Wealthy Chinese move offshore money to U.S. banks as Beijing’s tax net widens

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.

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