China's elite have become more discreet in flaunting their wealth as the government steps up its frugality and anti-corruption campaign, Agence France Press (AFP) reported.

The mainland's high end establishments Macau's casinos and, Hong Kong's shopping districts are all feeling the pinch with China's ultra-rich have scaling back spending sprees to avoid attracting the state's attention.

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The report attributed the sudden penny pinching ways of China's elite to President Xi Jinping's anti-graft crusade, which has ensnared several high-profile personalities and have sent a chilling effect on how the very rich spend their money publicly. A parallel austerity drive by the government is likewise making government officials less likely to organize expensive gift-giving and banquets within the state sector, it added.

In China, demand for luxury items private jets, yachts, expensive imported wines, whiskeys and handbags are weakening, with officials from those industries all pointing to the decision of tycoons and government officials to cut back on lavish spending.

Hong Kong's shopping areas are also reporting softer demand among China's elite. While there a host of reasons cited, among those is the decision by rich mainlanders to do their shopping sprees farther away from the prying eyes of the government.

"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.

Macau too has had fewer visits from high rollers from the mainland, which has taken away the heavy spenders that fuel the island's casinos, according to the report. This has led a drop in gambling revenues for the second straight month in July, the first major decline since the global economic crash, it added.

"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, told AFP.

TagsChina elite, Macau, gambling, Hong Kong shopping