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China&rsquo s data points to foreign firms operating in the country not only declining to reinvest their earnings but also &ndash for the first time &ndash becoming large net sellers of their existing investments to Chinese companies and repatriating the funds. FDI  outflows  exceeded  $100 billion in the first three quarters of 2023 and are likely to grow further based on  current  trends, analysts say.
&ldquo The recent moderation of the Fed&rsquo s tone is helping to revert depreciation pressure and should also help stem off the capital outflows,&rdquo said Herrero in presentation slides reviewed by Asia Times. She added that net capital outflows have persisted in China&rsquo s stock markets, fueled by decelerating economic growth, negative industrial profits and a real estate crisis.
Despite initially bullish expectations, Chinese stocks have been among the world&rsquo s worst performers in 2023, with a  year-to-date loss  of 9% for the MSCI China Index, following a 23.6% drop in 2022 and 22.8% in 2021. According to  Bloomberg data, Chinese stocks listed in Hong Kong, Shanghai, Shenzhen and New York have charted a $955 billion market capitalization loss this year.
As for complaints of  Singapore becoming increasingly unaffordable for locals, Nydia Ngiow, a managing director at BowerGroupAsia, a policy advisory firm,  said  &ldquo such sentiments did not stem from the recent influx of Chinese nationals. Singapore&rsquo s rapid economic development in the last few decades has thrived on business- and wealth-friendly policies, which inevitably resulted in increasing inequality.&rdquo

Singapore&rsquo s taxman wants the wealthy to pay more. Photo: iStock / Getty Images
Ngiow noted that Singapore government policies have taken a &ldquo leftward shift&rdquo in recent years, even as it has sought to court the wealthy. &ldquo Examples of these measures include increased taxes on high incomes and luxury goods, including luxury cars, and a proportionate increase in taxation based on the value of private property,&rdquo Ngiow said.
The city-state this year imposed a whopping 320% tax on high-end vehicles with an open market value higher than S$80,000 ($59,560), up from a previous rate of 220%. Authorities likewise raised the personal income tax rate for top-tier earners, targeting the top 1.2% of personal income taxpayers, in 2022 alongside upward adjustments to luxury property taxes.
&ldquo While the exodus of Chinese nationals to Singapore is no doubt a sticking point for the country, as it highlights the number of ultra-wealthy, this is unlikely to significantly strain ties between China and Singapore,&rdquo Ngiow added, noting that deep economic cooperation and large investment flows between the two countries &ldquo goes a lot deeper than disagreements over a few millionaires.&rdquo
Follow Nile Bowie on X, formerly Twitter, at @NileBowie

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https://www.todayonline.com/singapore/china-singapore-affirm-close-ties-lawrence-wong-beijing-2319696