Australian Immigration Daily News

by David KO Chin, Managing Director, Basis Point

The author of the 2013 best seller Crazy Rich Asians has launched China Rich Girlfriend.  His response to criticism that he is replacing one bad stereotype (of poor Asians) with another bad stereotype (of rich Asians) was that he was ‘opening up the range of stereotypes’.

One of the biggest challenges in digesting the information overload on ‘new China’ is that the extremes are interesting but not the norm.  We suggest the normal distribution curve be kept in mind to reclassify where the information sits in the larger picture.

Upcoming Events 

Our Significant Investor Visa (SIV) conference July 22nd in Sydney is fast approaching. Click here to register now at early bird rates. 

This 3^rd annual conference explores HNW Chinese investment in Australia with a focus on investments into emerging listed companies and venture capital via complying investment funds.

Basis Point newsletter –key takeaways 

1.       Legislation covering new investment rules for the Significant Investor Visa (SIV) has been launched.  Legislation for the Premium Investor Visa class has also been released.

2.       The agenda and speakers for our SIV conference have been released.  They include leading immigration lawyers, Chinese VC and investment experts, key Australian VC, fund manager and wealth management identities.

3.       2^nd generation Chinese rich are increasingly the target for ‘reeducation’ in modern China.  A unit of the CPC (Communist Party of China) that liaises between the party and China’s non-CPC elites, appears to be at the forefront of this.

4.       China Rich Girlfriend, a sequel to the international best seller, Crazy Rich Asians, sheds light on the lifestyle of China’s young nouveau rich and widens the range of Asian stereotypes in the West.

5.       Succession plans are a growing concern amongst Chinese HNW, particularly given the behaviours and lifestyles of the young rich in China.

6.       Two more global HNW wealth reports have been released, adding to four reports released in the past month.

7.       VC and tech disruption is coming from China to Australia.  Statistics on China’s VC industry sheds light on the scale of the market there compared to Australia.

Our newsletter remit is to explore the following themes:

1.       The growth and power China’s ultra-HNW is greater than the late-1800s US ‘robber barons’ and the UK taipans & industrialists of the mid-1800s

2.       However, the angst generated is similar (for their ruthlessness, power, & moral ambiguity, whether real or perceived), until time and philanthropy turns them into ‘high-society.’ 

3.       China’s HNW will become stronger global forces as the ‘China Dream’ eventuates.  Their money will influence asset values and popular culture in the West

4.       Volatility is part of this disruption.  The US suffered its Great Depression during its rapid global ascendency in the 1900s

5.       China’s 1-party rule AND the acceleration of technology voids comparisons to the rise of the ‘democratic West’ in the 1800s and 1900s.  We are in uncharted waters when analysing China’s rise

6.       China’s society and economy is changing rapidly.  The anti-corruption & anti-extravagance crackdown, the move towards mass entrepreneurship & innovation, the focus on a consumption-led economy, and the reformation of Chinese societal values makes for interesting times.

We search the globe to produce insights on ‘China disruption’. 

Our challenge, as collators and synthesisers of information from multiple sources, are:

a)      Information overload on China is increasing.  What to include & what to leave out?

b)      Biased reporting (either pro or anti -China) needs to be reassessed

c)       Stories that depict extreme examples as the norm needs to be recalibrated

d)      Popular media often write emotive & passionate stories to evoke stronger reader responses (to increase readership and revenues), sometimes at the expense of accuracy.  We remove the emotion and add insights so that the information is useful rather than passionate (making for dull reading…so our apologies in advance).

We look forward to staying in touch and informing you via our complimentary newsletters of the opportunities from the ‘China disruption’ investment theme.