SINGAPORE — Wealthy Chinese rattled by Beijing's widening hunt for overseas wealth are turning to a once-familiar refuge for their money: the U.S.
Private bankers and lawyers who work with Chinese clients say inquiries about opening U.S. bank accounts have grown in the months after Beijing imposed retroactive taxes on offshore wealth in July, moving assets previously stored in Singapore or Hong Kong there to stay further away from Beijing's reach.
"It has become relatively prevalent," said Keith Tan, CEO of Singapore-based Golden Acacia Capital, who is helping Chinese clients manage their offshore portfolios. His clients began planning exits to the U.S. in July, and some have the accounts set up in less than two months. "The hurdle is not that high for Chinese clients to open American accounts and transfer assets there."
Wealthy clients tend to choose large private banks while smaller accounts go to regional banks or online brokers, Tan said.
The rush has gained urgency with China's new tax regime on offshore trusts. Authorities said in July that income and gains from overseas trusts owned by Chinese tax residents would be taxed at 20%, setting off a scramble for cash and alternative structures.