Bringing you live news and features since 2006 

China emerges as safe haven for offshore HNW investors during Covid-19 pandemic, says GlobalData


Covid-19 is pushing investors, particularly in North America and Europe, to invest offshore to minimise their tax liabilities, with mainland China increasingly attracting the interest of international investors, according to data and analytics company GlobalData.  

GlobalData’s report, ‘HNW Offshore Investment: Drivers and Motivations’, reveals that 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 as well as directly. In addition, its bond market boasts relatively attractive rates compared to many Western markets, where the stock of negative-yielding debt continues to pile up. 

Andrew Haslip, Head of Wealth Management Research at GlobalData, explains: “During the pandemic, less established booking centrEs in Greater China did better, namely the mainland itself. A successful pandemic response, offshore investor confidence in the special administrative region, and enduring currency strength from its peg to the US dollar appear to have served the region’s traditional offshore hub, Hong Kong, well in 2020 with growing offshore AUM after outflows in 2019 due to unrest.

“The greater ease of investing foreign capital on the mainland exchanges as China opens up has meant a flood of offshore money into the mainland’s stock and bond markets.  

“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.” 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by