YUAN’S DEPRECIATION KEY WORRY FOR OVER 84% OF HNWI, 50% INCREASE BY LAST YEAR

60% BELIEVE CHINESE HOUSE PRICES WILL CONTINUE TO RISE OVER NEXT 3 YEARS， RISING 26% IN TOTAL

US WEST COAST DESTINATION OF CHOICE. SEATTLE UP TO 2^ND PLACE, BEHIND LA AND AHEAD OF SAN FRANCISCO. OVERALL PERCENTAGES DROP SINCE TRUMP ADMINISTRATION.

34% CONSIDER MOVING TO ANOTHER CITY IN CHINA. POLUTION AND EDUCATION MAIN DRIVERS.

Hurun Report Releases Immigration and the Chinese HNWI 2017 in Association with Visas Consulting Group

Chinese Immigration Index:

l  The United States remains the most popular emigration destination for HNWI investment emigrants for the third year running. Canada, which has been behind the UK for the last two years, overtook the UK for the first time this year, while Australia remains in fourth. Malta, Antigua and Dominica enter the top ten for the first time, according to the Chinese Immigration Index. Hurun Research along with Visas Consulting Group, have selected the most suitable destinations for China's HNWI investment immigrants according to eight criteria, namely education, investment destination preferences, immigration policy, property purchasing, tax, medical care, visa-free travel, and ease of adaptability. Countries with no active investment immigration policy were not considered.

Overseas property:

l  The United States is once again the top destination for investment emigration and property purchasing. Los Angeles remains the most popular city in North America among Chinese HNWI for the fourth year running, while Seattle is on the rise every year, comes ahead of third-placed San Francisco for the first time, in second place. New York remains the fourth most popular city, followed by Vancouver in fifth. Overall, US cities have seen a fall in favor since the Trump Presidency.

l  HNWI from China's South and East regions prefer the economically developed coastal cities of the United States, including Seattle (13.1%), San Francisco (10.4%), New York (9.9%) and Boston (7.8%), while those from the North and West prefer destinations with clean air and access to nature such as New Zealand (5.4%) and Sydney (4.3%).

l  Education and living environment continue to be the main reasons for emigrating overseas for the fourth consecutive year, accounting for 76% and 64% respectively. In addition, a new motivation, the desire for an ideal living environment, accounted for 53% this year, while other reasons included medical care, with 29%.

l  27% said that long waiting times are their biggest hindrance to overseas immigration, top again for four consecutive years, although 1% less than last year, followed by language barriers and the difficulty of integrating into mainstream society with 17% and 15% respectively, 2% and 4% less than last year. Application difficulties, loneliness and being unable to emigrate with their families has increased from last year, the proportion citing high costs as a significant obstacle saw a sharp decline this year. Regional differences include those from the South and East - used to a faster pace of life - being more likely to be concerned by long waiting times, language barriers and loneliness, while those from the North West worrying more about application difficulties, being unable to emigrate with their families, and high costs as greater obstacles.

l  34% HNWI said they were considering moving to a different city in China. “Hoogewerf said, “With one third of Chinese HNWIs looking to move city, especially to first tier cities, that suggests premium house price have still a long way to go.” The main reason is the pollution of the living environment, which accounts for 52% of the total. Education quality (44%), ideal environment life (37%), food safety (24%) and medical level (21%) also have a higher proportion. On the question of choosing domestic cities, 46% of HNWI choose the first-tier cities such as Beijing, Shanghai, Shenzhen.

Global Asset Allocation:

l  60% of HNWI believe that domestic house prices will continue to rise over the next three years, rising on average 26% by the end of three years. Over 60% are optimistic about China's economic development over the next three years. 22% believe that China's high-speed development will continue, and 44% think that China's positive economic development will slow down.

l  A massive 84% of HNWI are concerned about the devaluation of the yuan, up 50% on last year. Nearly half express concerns about the exchange rate of the dollar, foreign exchange controls and domestic property bubbles. Respondents are paying ever-closer attention to overseas financial management (property funds, insurance and so on) at 26%, double last year's proportion.

l  Risk control methods remain the primary overseas investment concern for HNWI, accounting for 35%, 2% more than last year. Greater emphasis is placed on reliable investment mechanisms and risk assessment, accounting for 21% and 18% respectively, compared with considered real income this year, with 13% down eight percentage points from last year.

l  Lack of overseas investment knowledge is the main concern for HNWI with regards to overseas financial investments for the fourth consecutive year, accounting for 37%, down 3% this year. With the tightening of foreign exchange controls, 20% of HNWI chose such controls as their main issue. The third biggest problem remains the non-investment channel, but the proportion is 8% less than last year.

 (15 July 2017, Shanghai, China) The Hurun Research Institute in association with Visas Consulting Group today released the Immigration and the Chinese HNWI 2017. This 30-page professional report is based on a special survey of 304 Chinese HNWI with an average wealth of 20 million yuan who have already emigrated, are applying to emigrate or who plan to do so in future, and was conducted between April to July this year. It explores in depth the key questions regarding global asset allocation, emigration and overseas property purchasing, while at the same time, releasing the Chinese Immigration Index 2017, an index of the most suitable nations for China's HNWI investment immigrants and the Preferred Overseas Property Purchase and Emigration Destinations. This is fourth consecutive year of the white paper, and this year, for the first time, it reveals the different tendencies arising among HNWI based in China's South and East regions compared with those from the North and West regions.

Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said, "It is worth noting that our survey is focused on China’s high net worth individuals, defined as individuals with wealth of between CNY 10 million and 200 million (US$1.5 million to US$30 million). Ultra high net worth individuals with over US$30 million have different considerations, with taxes and quality of life ranking higher.”

Over the past year, the Federal Reserve has continued to raise interest rates, the yuan has undergone devaluation, first tier cities have seen property purchase restrictions imposed, and the Belt and Road initiative has promoted international investment, and these wide-ranging new developments, both domestic and international, present HNWI looking to invest and emigrate overseas with an ever-widening array of choices to make. Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said, "Over the past decade, the number of Chinese HNWIs considering immigration has remained at around 60%, but this year has come down to just under half, the lowest on record, but still not low.”

According to the white paper, 84% of HNWI are concerned about the value of the yuan's depreciation, up 50% on last year. 60% of HNWI believe Chinese house prices will continue to rise over next three years. The West Coast of the United States is the most attractive to China's HNWI immigrants and overseas buyers, especially Los Angeles, Seattle and San Francisco. 34% HNWI said they were considering moving to a different city in China.

Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said, "Education and pollution are driving China’s rich to emigrate.  If China can solve these issues, then the primary incentive to emigrate will have been taken away.  I am delighted to put out the Immigration and the Chinese HNWI 2017 for the fourth consecutive year with leading investment immigration firm Visas Consulting Group."

David Chen, Visas Consulting Group partner lawyer, said, “at the beginning of the cooperation, Visas Consulting Group and Hurun Report were taking the mission of the white paper on Chinese investment is to ‘show the forward-looking opinions, data of the immigrant population and the immigration industry’. After consulting with Rupert and conducting in-depth research on the client, we jointly put the focus of Immigration and the Chinese HNWI 2017 White Paper on the issue of ‘Chinese Immigration Map’. We are delighted to team up with Hurun Report, the world’s leading authority on China’s HNWI, to publish the Immigration and the Chinese HNWI 2017 white paper. Against the background of China’s economic transformation, this year’s white paper will reveal a broad range of immigration data and trends to its readers.”

Summary

Chinese Immigration Index:

This year, Visas Consulting Group and Hurun Research examined nations across the globe capable of providing viable emigration opportunities, based on the eight categories of education, investment destination preferences, immigration policy, property purchasing, personal taxation levels, medical care, visa-free travel and ease of adaptability, to create the Visas Consulting Hurun Chinese Immigration Index 2017 (CII 2017), which reveals the top ten countries. The United States remains the most popular emigration destination for HNWI investment emigrants for the third year running. Canada, which has been behind the UK for the last two years, overtook the UK for the first time this year, while Australia remains in fourth. Malta, Antigua and Dominica enter the top ten for the first time. Countries without active investment immigration policies, such as Switzerland, were not considered.

Table: Chinese Immigrants Index

Source: Immigration & the Chinese HNWI 2017, by Visas Consulting Group and Hurun Report

- same as last year ↑up ↓down *new to top 10

Overseas property: Preferred Destinations for Emigration and Overseas Property Purchases

In terms of property purchasing and emigration, the United States remains the emigration destination of choice among HNWI once again. The top ten destinations for emigration and property purchase are Los Angeles, Seattle, San Francisco, New York, Vancouver, Boston, Melbourne, Toronto, New Zealand and Sydney. Los Angeles remains the most popular city in North America among Chinese HNWI for the fourth year running, while Seattle is on the rise every year, surpassing San Francisco for the first time, to take second place. New York remains the fourth most popular city, followed by Vancouver in fifth. Boston fell to sixth, Melbourne maintained seventh, and Toronto climbed two places to eighth.

The results show that compared with those from the more investment-focused South and East of China showed a more pronounced preference for the economically developed coastal cities of the United States, including Seattle (13.1%), San Francisco (10.4%), New York (9.9%) and Boston (7.8%). For those from the North and East, hailing from regions noted for environmental pollution and cold, dry climates, the desire to enjoy a better quality of life leads to them preferring destinations with clean air and access to nature such as New Zealand (5.4%) and Sydney (4.3%).

Table: Preferred Destinations for Emigration and Overseas Property Purchases

Source: Immigration & the Chinese HNWI 2017, by Visas Consulting Group and Hurun Report

- same as last year ↑up ↓down *new

The results of the Visas Consulting Hurun Immigration and the Chinese HNWI 2017 white paper are drawn from the results of a bespoke survey carried out among Chinese HNWI. The report focuses solely on investment immigration, and does not include other categories such as skilled migrants.

The survey was carried out in questionnaire form between April and July 2017 in China's key cities nationwide. Beijing, Shanghai, Guangzhou and Shenzhen accounted for 46% of responses. Respondents had average wealth including property of 20 million yuan, compared with 27 million yuan last year. Among them, those with 10 million yuan or less constituted the majority at 49%, with those with between 10-50 million yuan accounting for 45%, 50-100 million yuan for 5%, and over 100 million yuan for 1%. Their wealth is mainly accounted for by property values and salaries and bonuses (both with 25%), as well as investment returns (23%), company operations (16%), donations from elders (8%), business selloffs (2%) and inheritances (2%).  Respondents were 39 years old on average, one year younger than last year, with 31-45 year olds the most numerous (57%), followed by 46 years old and over (26%) and 30 years old and below (17%). Respondents' children were 13 years old on average, with those with children aged ten years or younger accounting for 50%, 10-18 years 30%, and over 18 years with 20%. The survey also includes information obtained from experts. In this report, the 'southeastern' region includes Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Guangdong, Fujian and Hainan, while the 'northwestern' region is made up of Beijing, Sichuan, Yunnan, Guizhou, Chongqing, Hunan, Hubei, Henan, Heilongjiang, Jilin, Liaoning, Shanxi, Hebei, Shandong, Shaanxi, Gansu, Qinghai, Inner Mongolia, Ningxia, Xinjiang and Tibet.

This is an executive summary of the Chinese press release. For the full press release, please refer to the Chinese language version. For further information, please contact the relevant contact person.

About Visas Consulting Group

Founded in 1974, Visas Consulting Group is a leading international immigration legal services provider.

Now, 43 years later, Visas Consulting Group has helped tens of thousands of applicants to immigrate. VCG was also one of the earliest immigration advisory companies to enter the Chinese market, and now has branches in top-tier cities nationwide. The professional standards and quality of service have won not only praise from clients, but also formal recognition from the immigration services of the target countries.

VCG is committed to maintaining its leading position in immigration services, providing clients with expert, timely and thorough service, and to satisfying each client’s specific needs. Above all, VCG sees protecting each client’s interests as its duty, in order to help them build a better future in a new country.

About Hurun Report Inc.

Nobody Knows China’s Rich Better!

Established as a research unit in 1999 by British accountant Rupert Hoogewerf, Hurun Report Inc. has grown into a leading research house, media and lifestyle investments business based in Shanghai, China, best-known for its rankings of the richest people in China, India and the rest of the world.

Hurun Report Inc. has four divisions: Hurun Research Institute; Hurun Media; Hurun Conferences and Training, an active events division targeting entrepreneurs and high net worth individuals; and Hurun Lifestyle and Investments, with investments in education, interior design, horses, bespoke tailoring, media and retail.

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Press Release - Immigration and the Chinese HNWI 2017 ENG170715.docx

新闻稿：《2017汇加移民胡润中国投资移民白皮书》170715.doc

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