China’s wealthy are transferring their cash to Singapore
Key takeaways:
- A rising number of wealthy Chinese are setting up family offices in Singapore.
- The trend seemed to pick up the previous year after Beijing’s rash crackdown on the education industry and focus on “common prosperity” — average funds for all, rather than only a few.
- Over the previous 12 months, questions regarding fixing up a family office in Singapore have doubled at Jenga, a five-year-old accounting and corporate services company, according to its creator Iris Xu. She said most questions come from people in China or emigrants from the nation.
More and more wealthy Chinese are nervous about keeping their cash on the mainland, and some see Singapore as a shelter.
Since rallies disrupted Hong Kong’s economy in 2019, wealthy Chinese have looked for alternative locations to keep their funds.
Singapore proved appealing because of its extensive Mandarin Chinese-speaking neighborhood, and, unlike many nations, it doesn’t have a wealth tax.
The trend seemed to pick up the previous year after Beijing’s sudden crackdown on the education industry and focus on “common prosperity” — average wealth for all, rather than only a few.
According to CNBC’s interviews with Singapore companies that allow affluent Chinese to transfer their acquisitions to the city-state via the family office structure.
A family office is a privately held firm that takes asset and wealth management for a wealthy family. Setting up a family office usually needs at least $5 million in investments in Singapore.
Over the prior 12 months, questions regarding setting up a family office in Singapore have doubled at Jenga, a five-year-old accounting and corporate services company, according to its founder Iris Xu. She stated that most questions come from people in China or emigrants from the nation.
Approximately 50 of her customers have opened family offices in Singapore — individually with at least $10 million in purchases, Xu stated.