China"s wealthy seek overseas business investments in 2023

In 2023, there has been a notable increase in interest among wealthy Chinese individuals seeking business investments abroad, particularly in Japan. This trend is driven by a combination of slower domestic growth in China and favorable conditions such as a weaker Japanese yen. Asset managers report a significant rise in the number of Chinese family offices looking to acquire smaller businesses overseas, reflecting a shift from merely seeking investment returns to pursuing broader business opportunities. Noah Holdings, a wealth management firm, has observed a 23% increase in overseas registered clients, with active overseas clients rising by nearly 63% year-on-year. This indicates a growing trend among affluent Chinese families to establish offices and residences in locations like Hong Kong, Singapore, and Japan, allowing them to explore global business opportunities while maintaining ties to their operations in China. The tightening of capital controls in mainland China, which limits overseas foreign exchange to $50,000 annually, has further motivated these wealthy individuals to seek alternative avenues for investment. As a result, many are looking towards Southeast Asia, the Middle East, and Africa for growth opportunities. This shift in focus towards global business expansion is still in its early stages, and not all affluent families will choose to invest abroad. However, as the newer generations of entrepreneurs adopt a more global perspective, the trend is expected to continue, indicating a significant change in how Chinese wealth is managed and utilized.