China’s big spenders are reining in overt shows of wealth, shelving shopping trips in Hong Kong and Macau in the face of the Communist Party’s anti-corruption and frugality drive, analysts say. President Xi Jinping has launched a much-publicized graft crackdown since taking office last year with a series of high profile takedowns of party officials sending shockwaves through an elite who once did little to hide their prosperity.

A related austerity drive, ordering an end to excessive gift-giving and banquets within the state sector, has also meant officials are wary of popping too many champagne corks.

Fearful of attracting any scrutiny that might lead to a potentially career-ending probe, many of China’s most powerful are either tightening their belts or being much more careful about how they spend their money publicly, analysts say. That shift has been most keenly felt in the Chinese elite’s nearest playgrounds of Hong Kong and Macau. But a ripple effect is beginning to have an impact as far afield as the luxury fashion houses of Europe.

“The corruption crackdown shows no signs of slowing down. It has created a lot of concern within the country and as far as I can see a lot of high profile individuals are much more cautious about their overt spending,” Steve Vickers, a risk consultant and former head of the Royal Hong Kong Police’s Criminal Intelligence Bureau said.

Recent key indicators of the luxury market in Hong Kong and Macau have shown a noticeable downward trend in areas where China’s elite play a key role. Analysts say Hong Kong’s falling retail sales have been affected by a number of causes, including the general slowdown of the world’s second-largest economy, anti-mainlander sentiment in the southern Chinese city and the tendency of high spenders to splurge further afield where their shopping sprees are less noticeable.

Sales of jewelry, watches and other valuable gifts slumped 28.2 percent in June according to official government data.

“At this critical moment, you don’t want to lavishly spend a lot of money and draw attention overseas even if it’s your own money,” David Ji, head of research and consultancy for Greater China at realtor Knight Frank, told AFP. On the mainland itself, other key indicators illustrate the more cautious approach officials and big spenders are taking.

The nascent but growing market for private jets has slowed as business tycoons opt for smaller or less flashy models while demand for yachts has also seen a hiccup.

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AGENCE FRANCE PRESSE