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Over the past three decades, China’s economic reforms have created a significant number of millionaires and billionaires. But the new found wealth has also led to a startling increase in the number of Chinese nationals emigrating to other countries. More and more rich seem to be considering moving abroad, as their wealth has made it easier to obtain citizenship and permanent resident status in other countries.

A better education system, better living conditions, or better investment opportunities? Why have China’s newly rich taken to the idea of emigrating to far-away lands?

According to a new survey conducted by Hurun Research Institute, among the country’s 60, 000 super-rich with assets of at least 100 million yuan, nearly half of them are considering emigrating overseas. And 14 percent of them have already emigrated or are in the process of emigration.

The first step usually involves buying property in the desired destination. This real estate agent in Beijing, who specializes in US property, has witnessed a dramatic increase in business over the past three years.

Yu Jingke, CEO of HM Investment, said, "We have seen a double-digit increase in terms of our client numbers, they are wealthy Chinese families. A lot of them either are in the process of applying for emigration, or are seriously considering looking at the option. Besides capitalizing on a cheap US housing market, for this group of wealthy Chinese, investing in real estate is the initial and necessary step for them to emigrate."

This real estate agent is not alone. One consulting company is also handling a significant number of clients who are looking to emigrate. Clients usually fall into to the upper class category but try to keep their intentions about emigration quiet.

Larry Wang, president of Well Trend United Inc., said, "China’s less creative teaching-learning pattern and heavy-loaded study, concerns rich parents. Seeking a better education environment for children is the major drive behind the emigration plan. And they want their children to get a better chance to study abroad, and get a western style education. Besides the kids, a considerable amount of people are choosing to emigrate usually to own a foreign vacation home. Clients frequently ask how they can still travel regularly to China with a foreign permanent resident status."

Since the survey came out, a series of questions have been asked if this emigration trend will lead to financial capital and wealth being taken out of the country. Experts say that might not be the case.

Xu Guangjian, professor in Renmin University of China, said, "Wealthy Chinese emigrating to other countries is normal now but you could not have imagined that thirty years ago. In this sense, this is a phenomenon of social progress along with rising economic capacity. A number of wealthy Chinese would put their business emphasis on China, because doing business overseas may not guarantee another success. China would give them more opportunities to do business."

Taxation is another consideration for rich Chinese to not completely move all their assets or business out, and some may not even apply for resident status.

Yu Jingke, CEO of HM Investment, said, "Some wealthy Chinese may apply for an American green card only for their children and wives, but for themselves, having a permanent resident status means taking taxation obligations. No matter where they are doing business, as long as they are American residents, they have to report to the IRS, and pay their income tax. In this case, having a green card may be a burden, let alone moving a business abroad."

Of the Chinese millionaires polled by Hurun Research Institute, the United States is the most popular destination for them to set up a second home, followed by Canada and Singapore.

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