Hedley called on government to refocus on major investor visas. (picture of Australian newspaper)
Australian financiers have called on government to restart a visa program designed to attract Chinese investors to help fund the next wave of local entrepreneurs.
Hedley (Guy Hedley), a former Macquarie private investment bank from 2001 to 2012, is now chairman of Chengyu Financial Asset Management Co., Ltd. (Atlas Advisors), the Australian newspaper reported.
Chengyu, which currently manages A $1.7 billion, is one of the few capital managers focused on major investor visa (SIV).
Hedley said SIV visas are no longer attracting attention, leaving start-up companies short of funds.
In line with the policy, the applicant for the SIV visa has an investment of $5 million in a specific area to obtain a 4-year visa and can then apply for permanent residence in Australia in this way.
"According to the original plan, the government should issue about 60 (SIV) visas every month, but only about 10 per month after 2015."
"under the original SIV visa program, about 200 fund management managers were required to serve clients, but now we only have six people left."
The approval time of the SIV visa is also referred to as further highlighting the "moribund" status of the visa. Mr. Hurley said: "(SIV) The initial approval of the visa is from 6 to 9 months. The same visa, even if the applicant is less, will take a year or two."
Although the Productivity Committee has criticized the so-called benefits of the SIV visa, Hudley believes that the visa`s potential in helping Australian start-ups should not be ignored.
"the 2016 report of the Productivity Commission measures interests over a very short investment window of four years, but this should be seen as an intergenerational plan," he said.
"Many of our customers are at the forefront of China`s science and technology boom, which is why the SIV visa is so important in venture capital. In the absence of foreign investment, many of Australia`s innovations in medicine, science and technology can be frustrated in the conceptual phase."
Australia`s government reformed its SIV visa in 2015, requiring 10 per cent of A $5 million in investments to be invested in approved venture capital funds and 30 per cent to start-up small listed companies.
While these changes add to the complexity of the SIV visa and the difficulty of managing the fund`s management, Mr. Hurley is of the view that these policies do at least force investors to invest the wind in the Australian market, so that the uncertainty of the economy is well hedged.
Chinese investors are still interested in SIV visas, Hedley said. "as many as 200 investors still invest in Australia every year. Government has done a series of co-ordinations in the past, but the last cabinet did not regard SIV visas as a priority because immigrants were tagged as taboo words."
"government needs to understand that these investors are very rich and that the relationship network is so tight that once settled in Australia, it can have a huge impact."
Mr. Hurley also said that he would be optimistic about the importance of the group when he was re-elected. (Enyo)
