Thaindian News

Beijing, April 22 (IANS) A number of Chinese millionaires are investing abroad as they are looking to emigrate, a media report said Friday.

The number of high net worth individuals in China exceeded 500,000 in 2010, which was 19 percent more than in 2009, said the 2011 Private Wealth Report.

Global Times quoted the report as saying that among those who have at least 10 million yuan ($1.53 million) worth of individual assets available for investment, nearly 60 percent are either considering emigration through investment overseas or are already finalising the process.

It said that those with at least 100 million yuan, 27 percent have emigrated, and 47 percent are considering leaving the country.

Over 1,000 people applied for investment emigration to the US in 2009, which was double the 2008 figure, according to the Beijing Entry & Exit Service Association.

The report was prepared after a survey of 2,600 rich people and studies with more than 100 analysts.

Zhong Dajun, director of the Beijing Dajun Institute for Economic Observation, told Global Times that investment immigration of rich people is a wealth drain that needs to be halted.

“We have been working hard to develop the economy in the past 30 years, but now these elite members of society are fleeing with the majority of the wealth. The loss may be even higher than all the foreign investment we have attracted. It is as if, when the time of harvest comes, we find the fruits have all gone to others’ baskets,” Zhong was quoted as saying.

Xia Xueluan, a sociologist at Peking University, said: “We can only hope the rich people stay out of patriotism.”

“The government has started to improve the wealth-distribution system in the face of the income disparity, but the process will take some time,” Xia was quoted as saying.

“Those rich people should ask themselves before they leave, ‘Should I desert the motherland and people by putting money into others’ hands?’” added Xia.