Why do Chinese HNWIs send children abroad and buy land?

In China, which has achieved remarkable economic development, "Super rich" which is a rich man of Japanese imagination is appearing. However, many of its Chinese super rich have students own their children abroad. There seems to be existence of excessive rapid economic growth and the distortion of the Chinese society behind it, as the rich man of China raise children overseas.

China's Rich Kids Head West - The New Yorker
http://www.newyorker.com/magazine/2016/02/22/chinas-rich-kids-head-west

Jean Fan, editor at The New Yorker, covered the Chinese who will study abroad in Canada near Vancouver. The fans interviewed by the Chinese are young people in their teens and twenties who are children of wealthy people called so-called "super rich" who are studying overseas leaving their parents and relatives in their home country. Most interviewees said that they were living a lifestyle away.

One Sunday morning, a woman twenty years old called Waime who appeared to pick up her fan. Weimi said that she had been playing at night until two hours ago appeared in white Maserati Gran Turismo.

ByÁngel Álvarez

Weimi often expresses the cost of everyday life with luxury goods, and in conversation, "The salary of the assistant is about Roger Vivier's high heels" or "In the night sports, I spend about half the money of a bag of Birkin" And so on. Mr. Fan, who was taken to a boutique where Alumni at Vancouver Fashion Institute was working, said to her classmate, "Chinese friends treat us like a supermarket, 3000 Canada The dollar (about 250,000 yen) clothes are like a milk carton. "

Waime was 14 years old and moved from Taiwan to Vancouver. Parents are successful men who originated in the semiconductor business in Taiwan and are constantly telling us that they wanted to become strong in English. According to the thought of my father, Weimi came to Canada via an international school such as the US, Australia, etc. .

In China, which has achieved remarkable economic growth, those who succeeded in the big wave have gained tremendous wealth. However, in China, which has rapidly shifted from the communist economy to the market economy, it also creates many successful people who have succeeded in the waves of economic growth and also produces many poor people who still can not escape from the painful life, It is said that only one third of the wealth of wealth owns it. As for the number of Millionaire whose assets are over 1 million dollars (about 110 million yen), China has already surpassed the United States and has become the number one in the world.

The "first generation" who built wealth from a poor economically disadvantaged society in one generation has created rich "second generation" children who do not know the poverty. This rich second generation children were naturally wealthyOne child policyAs a result of growing up with the family's expectations and love as a whole due to the influence of it, as a child of infamous generation not having the spirit of thriftiness which is traditional Chinese values, "Fuerdai(Wealthy second generation) "It is called.

Many rich two wealth favorites in Canada is a Chinese drama depicting the glittering life of wealthy second generation typified by "Noble Bride: Regretless Love". Wealthians who saw dramas with both Chinese and English subtitles buy luxury goods as if they go through the drama world on the ground, ride on high-class foreign cars, take over expensive champagne at night and night is.


With the times wealth moved around the world, so called "IngredientIt is the fact that history has provoked to produce, and the frosty eyes close to contempt for money deposition are inherent. However, fans think that the children of the adults in Canada are a little different from the former adults.

The rapid development of the Chinese economy has transformed the poor into billionaire at an unprecedented speed. For this reason, because there is no person in Chinese society who knows how to deal with the newly born wealth, there is no model model as a "waste as money deposit", so how to use gold beyond the limit That is why.

In 2015, two wealthy generations who posted "Apple Watch Edition" of 2 million yen price exceeding 1 million yen to SNS who gave their own dogs also appeared.


Professor Jeffrey Winters, who teaches politics at Northwestern University, said, "China has produced wealthy people at an unprecedented speed after the Communist revolution, in any culture there is wisdom transmitted to old wealthy people, which stand out It is safe to live without it. "He stated the two countries Russia and China as peculiar examples which enlarged wealth so rapidly that the lifestyle of the wealthy people transmitted since long ago did not apply.

According to a recent study by the Bank of China, 60% of the rich class that falls under conservative standards with assets of 10 million yuan (about 180 million yen) or more in China are considering or planning to migrate abroad And that. And it is speculated that $ 450 billion (about 51 trillion yen) of funds are remitted overseas each year, and it seems that many of the funds flow into overseas real estate.

Land ownership is not allowed in China. If you want to own a building you only borrow land to the Chinese government with land ownership rights and sign a lease contract. Regardless of the speculation of the Chinese government, we are concerned about the possibility of being forced to evict evictions, and the rich Chinese people who thirst for land ownership often tend to be overseas real estate investment. And the real estate investment destination is not only the asset value of the land itself, but also a country with a high education level that safety is guaranteed and the child can move can be desired.


Mr. Paul Oei got acquainted with her in the process of interviewing Canadian wealthy second, Paul Oey said about "wealthy people in China" They buy real estate in Canada without hesitation.Canada is compared with New York, Los Angeles, Hong Kong, Japan And land prices are cheap and assets can be kept safely. "He states the reason why Canada is attractive for Chinese rich people.

As a result of the Chinese rich buy real estate, the value of Vancouver's detached houses has surged by 75%, an average of 1.9 million Canadian dollars (about 160 million yen) in the past 6 years. However, real estate owners living in China never participate in Canadian local communities, and there are increasing cases of troubles with local communities that have built up a good living environment. For this reason, while Mayor Vancouver appealed that the owner should make a high tax on real estate absent or real estate to be invested, some local residents benefited from the rise in the asset value owned by the soaring real estate prices There seems to be some opposition to the enactment of a law that could significantly impair the asset value.

The city of Vancouver is influenced by neighbors of Chinese people, either better or worse, but the rich two children of the new rich are not safe. Waime who rides Maserati said, "I am working hard to raise me, but I do not want to crush the company I built, my father told me" If someone else knows that I do not have the ability to take over the management of the company, I said that he will give management to him. " Although I am a rich Chinese person who thinks cute for children, I love the company I have built as much as a child, and even my child seems to have no guarantee to hand over the company.

The wealthy people in mainland China that send children abroad, such as Vancouver, will give funds to start a business in order to determine the abilities of children. Only wealthy 2 generations who showed their own managerial ability in this "examination" will inherit the enormous wealth generated by their parents.

Mr. Oei says that wealthiest parents like Weimi are "not 1% at the top of China's economic pyramid". According to Oei, parents of wealthy second generation are those who are between the top 1% and 2% to the last. "The top tier of 1% is a person who has a heavy pipe with the Chinese Communist Party, has political and economic stability, and there is no need to send children overseas or bring assets overseas in the first place It seems Oei said that.