China's Wealthiest Prefers Investing in the West Coast, Report Says
The United States is becoming increasingly attractive to wealthy Chinese people, especially on the West Coast, according to a report by Hurun Research Institute and Visas Consulting Group. The study's respondents are the Chinese high net worth individuals (HNWI) or Chinese people with personal assets amounting to more than 10 million yuan (US$1.4 million).
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States on the west coast topped the list of places where Chinese HNWIs are more likely to settle down and invest in, with Los Angeles, San Francisco, and Seattle besting other locations. The attractiveness of Seattle, a city in Washington, has been improving for the past two years and eventually surpassing New York.
Investments abroad account for 15 percent of the HNWIs' total assets, and 800,000 Chinese individuals are expected to invest in overseas properties in the next three years. Likewise, more than 60 percent of Chinese HNWIs plan to purchase homes in foreign countries in the same period.
"When it come to buying overseas properties, high rates of return was their main concern. Now, most people pay more attention to the reasonable allocation and inheritance of their assets," said David Chen, a partner and lawyer at Visas Consulting Group China.
The report noted that the respondents are more likely to buy a house close to schools, followed by downtown houses and houses in Chinese neighborhoods. These choices stem from the foremost desire to provide the best education for their children.
Chinese HNWIs also choose investments with the least financial risk, such as foreign exchange and fund and insurance investments. Rupert Hoogewerf, chairman and chief researcher of Hurun report, said that HNWIs are worried about the depreciation of the yuan as well as the housing price bubbles in China's biggest cities.
"The rich Chinese have been more actively considering investing overseas and are paying closer attention to the dollar exchange rate," he added.
Another reason for their investment migration is a friendlier application processes in the US and Canada.