Business tycoons in Hong Kong and Singapore are looking to diversify away from the stuttering Chinese economy, for the continued wealth and wellbeing of their family businesses. Among others Li Ka-shing, of the Sun Hung Kai Properties Empire, owned by the Kwok clan, has continued to buy assets in the US and Europe while divesting his interests in China.
According to wealth management experts, the shift in trend of diversifying assets away from Asia to Europe is accelerating. The trend was triggered by the recent market meddling including the notorious “circuit breaker”, a mechanism designed to stop free-falling prices. It added to the uncertainty around the renminbi, and the future for domestic stocks.
Emigration has also contributed to the diversification trend. Many wealthy Chinese families regard the US, UK or Australian as desirable places to live, offering personal security, better-quality education for their children and a higher standard of healthcare.
International banks are benefiting from this asset shift. While domestic investments are seen as run of the mill, Chinese entrepreneurs and officials are becoming more willing to pay US and Swiss banks in Hong Kong to recommend allocations and give advice on investing overseas.
Source: http://www.ft.com/intl/cms/s/2/02b5cbd6-d1a6-11e5-831d-09f7778e7377.html#axzz42O4BxWmt
