Offshore High Net Worth Investors Turn To China As Safe Heaven During Covid 19

Against this backdrop, mainland China has piqued offshore investors’ interest amid the pandemic, according to a leading data and analytics company’s GlobalData information shared with Finbold.  GlobalData’s report, ‘HNW Offshore Investment: Drivers and Motivations,’ reveals that COVID-19 is pushing investors, particularly in North America and Europe, to invest offshore to minimize their tax liabilities.   Andrew Haslip, Head of Wealth Management Research at GlobalData, explains: Even though, some of the greater activity in China is due to more structural changes, its financial markets are more open than before to non-resident investors, both via its connections to Hong Kong and directly. Besides, its bond market boasts relatively attractive rates compared to many Western markets, where the stock of negative-yielding debt continues to pile up.   Mr. Haslip concludes: According to the Head of Wealth Management Research at GlobalData, China’s regulators are working hard to ensure its markets are better able to soak up some of the offshore investment. And so more HNW investors booking directly into mainland China’s capital markets looks to be one of the enduring trends resulting from the pandemic.