Australia's 500 million tycoons visa re-emergence banned from buying at least 50 bonds for venture capital...
"Chinatown"-Official media of Chinese Australians
The federal government implemented new regulations on significant investor visas (SIV)-the permit for foreign millionaires to obtain the right of abode in Australia-on Wednesday, and market response to whether this will lead to a decrease in capital inflows to Australia has been mixed. .
The new rules granting foreign citizens residency in exchange for A$500 million investment have been refined, excluding bonds from investment types, and forcing a portion of A$500 million to enter venture capital and small and medium-cap equity funds.
Western Australian businessman John Garland established the 888 Fund to guide SIV funds to be deposited in township banks for loans to stimulate the economy of rural areas. He was very disappointed with the new regulations because it did not classify its products as compliant Qualified investment.
"As a result, we had to close our fund and redirect the funds we manage to other financial institutions."
"I am not resentful, but I am disappointed. We have been in international business for decades and it is really sad to see this visa hijacked."
"I believe that the new regulations will hinder the capital and interest brought by potential high-net-worth immigrants."
Federal Trade Secretary Andrew Robb introduced new regulations that require at least A$50 in funds to enter venture capital or funds invested in start-ups and small private companies. The government expects to increase this requirement for new applicants to A$100 million within two years. Other restrictions include the investment of at least A$150 million into small and medium-cap stocks, and a maximum of A$300 million into managed funds as "balanced investments."
Garland said he expects the new regulations to hit Queensland, Western Australia and South Australia the hardest. "I think Rob's attitude towards this incident has taken a 180-degree turn compared to before and it is difficult to reverse it."
However, the new regulations are also beneficial to some people. Some groups believe that the new regulations have high value.
Moelis Australia has invested about 5 million yuan in SIV funds into commercial real estate and has just established the first SIV fund for venture capital. It also established a small-cap stock fund called Moelis Australia Private Investment Fund.
"Moelis supports the government's new investment regulations. Therefore, we are confident that a large amount of new funds will flow into Australian emerging companies." Moelis' managing director, Andrew Martin, said.
So far, more than 750 foreigners have applied for SIV, and more than 9% of them are Chinese. They have invested more than 37 billion yuan in exchange for the right to work and live in Australia.
News compiled from "The Australian Financial Review"
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