Rich Chinese people fleeing country after Xi Jinping re-election: Report
Nov 01, 2022
Beijing [China], November 1 : Major stock markets fell sharply after the 20th National Congress of the Communist Party of China (CPC) last month which saw Chinese leader Xi Jinping secure a historic third term.
After the twice-decade meeting of the communist party, the capital is fast withdrawing from the Chinese market as rich and wealthy people have started fleeing the mainland, Financial Post report. Analysts say that this is a reflection of the market's mood over the future situation in the country.
Chinese Communist Party leader has chosen an entirely new team after winning the historic third term to lessen the likelihood that he will face a political challenge. This is because the top leader is likely to enact more hardline policies in Beijing regarding the economy, foreign relations, and human rights.
The seven most significant figures in China now make up the new Standing Committee of the party, which is chaired by Xi. The six were hand-selected by the president and are fiercely devoted to him.
Usually, Chinese equities perform well after the conclusion of party congresses but the 20th National Congress was different. Japan's Nikkei Asia reported that the main reason is the ascent of leaders to the country's highest decision-making body who lack reform-mindedness.
British immigration lawyers have received "start-up" instructions from three ultra-high-net-worth Chinese business families to implement their escape plan, according to a report by UK's Financial Times.
The immigration companies in the Chinese metropolis had reported a surge in the number of people applying for US green cards with special talents because the program has a shorter processing time.
Reports say luxury houses in Shanghai have fallen by about 40 per cent of the market price, and some people are selling them. Other reports detail that a large number of luxury houses are sold.
Lilian Co, who manages the Strategic China Panda Fund at Eric Sturdza Investments, said the market is clearly disappointed by the new seven-man Politburo Standing Committee which is filled with Xi's allies.
"Since Xi's ideology has not been market-friendly in the last few years, a leadership team loyal to Xi means no change in policy direction as long as he is in power," she was quoted as saying by CNN.
