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News Summary: Chinese look abroad to guard wealth

The Associated Press

REPORT: The China Merchants Bank and the consulting firm Bain & Co. say that China's richest people are stepping up investment in U.S. real estate and other foreign assets as they try to preserve their fortunes in the face of a fast-changing economy.

ACTION-REACTION: Communist leaders have pledged to use taxes and social spending to narrow the huge and politically sensitive gulf between China's small elite and its poor majority. Beijing is trying to shift the basis of growth to domestic consumption and services, reducing reliance on exports and construction that made fortunes for earlier entrepreneurs.

WRITING ON THE YUAN: Almost 60 percent of people surveyed with investments abroad plan to increase them, the report said. Real estate makes up the bulk of investment and top destinations include the United States, Canada, Hong Kong and Singapore. Half of those who haven't invested abroad plan to start, the report said.