Estimation and Economic Analysis of Migration and Wealth Loss of high-net-worth Individuals

CHEN Chu-sheng，ZHAO Xiao-yang and YI Chang-jun （Business School of Huaqiao University，Quanzhou 362021，Fujian，China）

Abstract：The migration and wealth loss of high-net-worth individuals not only exacerbate the gap between the rich and the poor，but also hinder the realization of the goal of common prosperity，which is a common challenge faced by countries around the world. While analyzing the migration motivation of China's high-net-worth individuals ，the authors calculate the number of Chinese high- net- worth individuals who migrated overseas or obtained permanent residency from 2008 to 2020 by manually collating the data of Chinese mainland migrants overseas. Based on this data，the authors estimate the amount of wealth lost by the migration of high- net- worth individuals in China. The results show that：by 2020，related wealth loss of high- net- worth individuals migration through investment migration，migration or overseas asset allocation has reached 14.91 trillion yuan；and the loss of individual tax due to the migration of high-net-worth individuals and the overseas asset allocation of high-net-worth individuals from 2008 to 2020 has reached 1.20 trillion yuan. The migration of high-net-worth individuals will has some impacts on China’s economy，such as the loss of individual tax and the widened gap between the rich and the poor，the impact on foreign exchange system and economic security，and the negative impact on the development of Chinese Modernization. So，we should， first，establish and perfect the expatriation tax system；second，we should improve the service level of medical treatment， education and finance；third，we should perfect the high- level overseas Chinese return mechanism ；fourth，we should promote the digitization of tax collection and management，and establish an information file management mechanism for high-net-worth individuals；and fifth，we should build a "two- way empowerment" cooperation platform between domestic high- net- worth individuals and overseas Chinese businessmen.

Key words：high-net-worth individuals；migration；wealth loss；common prosperity