Australian Immigration Daily News

China’s rich are funding business and investment opportunities in Australia via the Significant Investor Visa (SIV) scheme.

The magnitude of this development can be seen in the $650 million in legal/immigration fees spent by 65,000 applicants on Canada’s SIV equivalent.

These Australian opportunities are outlined in a recent SIV Newsletter produced by Basis Point Consulting.

David KO Chin, Managing Director of Basis point Consulting states:

'one of the biggest opportunities (which we mention to you here but is not for public consumption via our newsletter and website) is that the $5 million investment per SIV applicant is merely the tip of the iceberg.  The real prize is the opportunity to manage or provide services to the other assets held by the ultra-high-net-worth applicant.  (Many who would be worth $50 million to $1 billion+.)'

The newsletter highlights are;

• Witnessing the emergence of the ‘Australian comprador , with history repeating itself but in reverse.  Chinese compradors in the 1800s amassed significant wealth for themselves from the entry of European business houses into Asia.

• 174 SIVs have been granted, with 1238 expressions of interest, and 772 applications awaiting approval.  The Department of Immigration is working to enhance the programme.
• Trends/risks have been assessed covering Chinese investment into Australian property.  FIRB statistics are provided on foreign investment.
• Canada recently cancelled its Immigrant Investor Program, but news from Shanghai suggests it will be revised and restarted later this year.
• Basis Point’s second annual Significant Investor Visa (SIV) conference will be held in early July in Sydney.  Our first conference attracted 310 paid delegates, with sponsorship from One Investment Group, Perpetual, Holding Redlich, Macquarie Private Wealth, NAB Private Wealth, Moelis and Moore Stephens. 

The SIV industry could generate $5 billion in new capital annually to Australian businesses and investment products, and a further $1 billion into homes.

It will provide opportunities for professional services, investment providers, small-medium businesses and capital markets in Australia, as well as for distribution channels/wealth managers in Asia.