Overseas investment immigrants have been affecting the hearts of many Chinese, more money-sucking countless.
Australia launched an investment immigration visa program in November 2012, with a threshold of A $5 million, attracting about 47.6 billion yuan in less than six years, with China the largest source of investment, accounting for nearly 90 percent, according to the latest data. In 2015, as projects exploded, Australia`s government demanded more money to invest in its venture assets and start-ups, as well as longer lead times.
While Australia, the traditional immigration country of the United States, has gradually tightened, European countries, especially those in southern Europe, have in recent years introduced a policy of investing in housing for foreigners, with the threshold of only two hundred and fifty thousand euros at the minimum, and attracted many Chinese people to invest. Greece alone has spent at least 250 million euros since 2014.
Industry insiders caution that when participating in these immigration programs, attention should be paid to issues such as high premiums, high taxes and risk of policy change.
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"after the launch of the project, it became popular immediately. During the first year of the launch, about 100 Chinese people applied successfully, and the number of people in the second year showed an explosive increase, which was somewhat unexpected to the government of Australia. Because Chinese investors not only invested in the A $5 million after the visit, but also brought economic effects such as buying houses, buying farms and so on. " Liu Jianyu said.
An overseas investment immigration program, launched less than six years ago, has been "drawing money" to nearly 50 billion, while more than 8 people in Chengdu are from China.
This is Australia`s major investor visa program (SIV) launched in November 2012, with foreigners investing A $5 million in Australia (initially mandated to invest in cash funds). Non-venture financial assets such as state government bond funds and bond funds, which were revised in 2015 and raised venture capital requirements (see below), can be converted to permanent residency in Australia after obtaining a four-year visa while maintaining an investment period of at least four years.
As of March 31, 2018, 1974 SIV visas had been issued, receiving a total of 9.87 billion Australian dollars (47.6 billion yuan), according to the latest data released by Australia`s Home Office in late April. Moreover, since its launch, China has been the largest source of SIV applicants, accounting for 88.1 percent of applicants as of March 31, 2018, and 86.5 percent of successful SIV applicants.
A total of 1700 Chinese have invested more than 40 billion yuan to emigrate to Australia.
"it can be said that the Australian SIV program was born at the right time to fill the gap in the market for hundreds of thousands of investment migrants, when Singapore, Hong Kong and other investment immigrants stopped, and investment immigration projects in the United Kingdom also rose in price."
Liu Jianyu, an overseas immigration expert from Shanghai Bangyi Immigration Services Co., Ltd., told the 21 st century economic report. The figures also mean more than 1700 Chinese have invested more than 40 billion yuan in Australia over the past five years.
So what are the characteristics or attributes of this group?
"half of the clients we usually contact are from overseas, and about 80 percent of these customers are SIV immigrants from China, most of them are business owners / businessmen, the first group are Chinese developers, and in recent years there is an education industry. Businessmen in various industries, such as health care and automobiles, aged between 45 and 65, are mostly from the southern coast. Recently, I also saw some new technology startups emigrate to Australia, many people in their twenties, the crowd showed a younger trend, and their industries tended to be novel. For example, one of our recent new customers is the gold medal seller of Taobao. Also met more people from the north and the central and western regions of China. The prices of our top-tier properties range from A $5 million to A $30 million, and people who invest in A $5 million typically buy about A $20 million in real estate. "
Melbourne high-end real estate brokerage firm Kay&Burton partner, head of international department Mijie told the 21st century economic reporter.
But the popular "strong money-sucking" immigration program has recently shown signs of falling short of expectations.
From July 1, 2017 to March 31, 2018, an average of 15 SIV visas were issued from July 1, 2017 to March 31, 2018, according to Australia`s government. In the previous fiscal year, from July 1, 2016 to June 30, 2017, an average of 34 SIV visas were issued monthly, with a total of 405 SIV visas issued. Between July 1, 2015 and June 30, 2016, a total of 552 SIV visas were issued, or an average of 46 visas a month. In addition, data show that the first three years of the policy issued a total of 879 visas.
"after the launch of the project, it became popular immediately. During the first year of the launch, about 100 Chinese people applied successfully, and the number of people in the second year showed an explosive increase, which was somewhat unexpected to the government of Australia. Because Chinese investors not only invested in the A $5 million after the visit, but also brought economic effects such as buying houses, buying farms and so on. " Liu Jianyu said.
A decline in investor interest after the rise in investment plan risk
It is understood that the project did not meet expectations mainly because Australia adjusted the investment requirements, raising the risk of A $5 million investment, which has deterred some Chinese investors.
In 2015, Australia`s government revised the SIV investment rules. As of July 1, 2015, SIV investment must meet the following requirements, investing at least A $ five hundred thousand in venture capital funds or growth private equity funds. To promote the growth of start-up and small private companies in Australia; At least A $1.5 million will be invested in emerging Australian Stock Exchange listed companies, and the remaining A $3 million will be invested in "flexible portfolio" funds, which can be made by corporate bonds. Annuity fund and real estate fund mix composition (investment residential real estate limit is 10%).
"initially, because there was no local demand for investment targets, Chinese clients were conservative in their investments, preferring bonds and even bank deposits. We also had this partnership with one of the country`s top four, customizing the bank`s savings-based products with Australian government bonds for domestic customers. "it is now mandatory to invest in venture capital funds, which has a greater impact on the willingness of clients to invest, and this level of exposure is not in line with the risk preferences of Chinese investors," he said. Liu Jianyu said.
"the SIV project in Australia is really very popular with Chinese investment immigrants, but because many people are more conservative and tend to invest in capital preservation, government in Australia increases the risk exposure of investment and the number of people investing in it decreases. Especially last year, there was a time when the market was relatively light. " Beijing Lantai law firm investment immigration team partner sources told the 21 st century economic report reporter.
In addition to the changes in the conditions of the project itself, there are other factors.
China has tightened controls on capital departures in recent years, while Australia`s review process has tightened. Combined with the above factors, the original processing time was about one year or so, and now it will take about a year and a half to two years. " Liu Jianyu said.
Some Australian authorities have pointed to the risks associated with potential SIV projects because it is difficult to identify the real source of funding.
The 21st Century Economics reporter also sent interviews on the topic to the Shanghai Branch of the Australian Trade Commission (Austrade), which could nominate SIV candidates, but people said: Based on the changes in China`s foreign investment regulatory policy and other factors, it is not easy to comment.
There are recent signs of warming
But some people in the industry said the number of people in the SIV program appeared to be on a downward trend recently, but many Chinese have actually successfully emigrated to Australia through other investment visa schemes.
"the SIV program was granted a 188 visa, and in fact, in the past two years, a lot of Chinese have been granted another investment immigrant visa, 132 visa, which means that the related requirements will be higher." Said Mitch.
Other industry insiders told the 21st century economics reporter that under a series of internal and external factors, the recent domestic interest in Australia`s SIV project has a warming trend.
"on July 1, 2015, the Australian Federal government made policy adjustments to increase the risk requirements for investment. After about a year of silence, at the beginning of 2017, some high-quality fund products emerged to address customers` concerns, and applications are now on the rise. Combined with the low U.S. and Canadian policies and the waiting schedule, more customers are choosing Australia. " The source says.
