A member of the Goldman Sachs Group will oversee a new investment fund that aims to benefit from the influx of Chinese citizens looking to emigrate to the United States, Canada, the United Kingdom and Australia, according to Gillian Tan and Jason Chow’s recent article in the Wall Street Journal.
Chinese citizens seeking foreign passports and permanent residency in new countries has become more prevalent in recent years as China’s political uncertainty, economic problems and trade-related criticism have caused many Chinese to look elsewhere for business opportunities. These individuals have worked hard for their money and would like to protect themselves and their families from China’s new leaders, the source reported.
An estimated 1.4 million millionaires live in China, making it the third-highest population behind the United States and Japan. New visa programs have drawn the wealth out of the country, as capital flows out of China’s emerging markets. A Boston Consulting Group analysis showed that approximately $225 billion left China in the past year.
China has become the largest contributor to overseas programs that promise citizenship in exchange for large investments. In the United States, 75 percent of investor-immigrant applications came from Chinese citizens in 2011. During the same time period, approximately 29,500 Chinese immigrants entered Australia, marking the first year that British citizens were not the country’s largest percentage of immigrants, the source reported.
Australia’s Significant Investor Visa sets the financial bar even higher than the United States’ EB-5 program. While EB-5 requires an investment of $500,000 to $1 million, Australia’s program is more flexible. The Australia Capital Investment Fund will offer up to 600 visas and cap investments at a total of $3 billion.
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