An economic report revealed that four Chinese businessmen transferred more than $ 17 billion of their wealth to family credit funds abroad late last year.
The move shows how wealthy Chinese are defending their wealth from the hard-line tax regime the state plans to impose, according to Bloomberg.
According to the report, billionaire Sun Hongbin, chairman of Sonak China Holdings, a real estate developer, disclosed at the filing of a transfer request in Hong Kong on January 12 that he transferred most of his stake in the company to South Dakota Trust on December 31 The past, and is concerned with managing the wealth of families.
Wu Yajun, president of Longfor Group Holdings Ltd. - one of China's richest women - has taken a similar step recently. Similarly, two of the wealthy leaders, who are behind the Dalai Food Group and Hai Ya International Holdings, have done the same.
Three of the four companies listed in Hong Kong attributed the reason for transferring those funds abroad to career replacement plans (potential successors).
The ownership structures of the four major businessmen include entities in the British Virgin Islands.
The move comes at a time when Chinese tycoons are preparing for the possibility that the government will pursue the country's wealthy to push for tax cuts for the greater part of the population.
The personal wealth of individuals has ballooned to $ 24 trillion in 2018, giving the tax collectors a chance to make wealthy money more scrutinized and scrutinized, leading many families to seek sanctuaries such as trust funds to protect their wealth, according to Bloomberg.