Business · 2026-10-23 · Morning briefing

Wealthy Chinese shift offshore funds to US banks

Wealthy Chinese are moving offshore assets into U.S. bank accounts, shifting capital from traditional havens like Singapore and Hong Kong. The capital flight follows a July announcement from Beijing introducing a 20% tax on income and gains from overseas trusts owned by its tax residents. Private bankers and lawyers report a surge in inquiries since the policy change.

The U.S. offers a key advantage: it sits outside the Common Reporting Standard (CRS), an OECD framework through which more than 100 jurisdictions automatically share financial data. This perceived opacity, combined with investment vehicles that can reduce tax-filing obligations for non-residents, is the primary draw for those seeking to keep assets beyond Beijing's reach.

However, the manoeuvre is a high-stakes gamble. Lawyers warn that transferring funds from banks in Singapore or Hong Kong creates a visible record for Chinese authorities. According to one lawyer, a record of the transfer alone is enough for Beijing to levy the tax. As Clifford Ng, a partner at the Zhong Lun law firm in Hong Kong, noted, "Hiding is not tax planning."

Summary written by Cup of News with AI from the sources below. Check the originals for the full story.

Read the sources

• Wealthy Chinese move offshore money to US banks as Beijing’s tax net widens
• Chinese high-net-worth individuals move offshore funds to U.S. banks amid Beijing's tax expansion
• Why China is cracking down on billionaires and offshore wealth
• China's wealthy brace for a widening tax net as Beijing closes in
• China Tax Crackdown Forces Wealthy Investors to Assess Their Offshore Trusts

More stories in this edition

1. Tibet earthquake kills 16; over 12,000 relocated amid aftershocks
2. Sudan: RSF systematically attacked el-Fasher hospitals, probe finds
3. Newborn twins in Yemen fight for life amid hunger crisis
4. WHO warns of complex Ebola outbreak as virus reaches Nigeria
5. Saab's orders triple, buoyed by Ukraine fighter jet deal
6. Bridgewater China cuts gold, turns 'optimistic' on local stocks
7. Prime editing alters DNA inside a human for the first time
8. Moderna's mRNA vaccine cuts melanoma recurrence by 42%
9. Greece bans social media use for children under 15

Read the whole edition