Guangzhou / Hong Kong Trip

by Raymond Chan 03 October 2013

 Throughout our meetings in China and Hong Kong, the message is simple and consistent

The heightening China Property Prices (in tier 1 cities) and the Slowdown in China Economic Growth are prompting the Chinese businessmen to diversify their wealth globally. The first choice will no doubt be Hong Kong, then US, UK, Singapore and then Australia. As an Australian, we need to realize that we will never be their first choice of migration. Why? (1) Potential AUD weakness, (2) rich valuation in Australian properties, (3) Australian education system is seen as less competitive than that in US and UK.

Having said that, Latte with Ray think Australian Private Wealth Managers will do really well in servicing HNW Chinese due to the following reasons:

(1) China is the 2nd largest economy with over 3.55 million HNWI (High Net Worth Individuals), surpassing the number of HNWI in US (according to Accenture). As such, it’s a very profitable business for Australian Private Wealth Managers in providing a holistic solution to even a small portion of those HNW Chinese who end up migrating here in Australia.

(2) During our trip, a lot of enquiries have been surrounding the SIV (Sophisticated Investors Visa, announced last November) which prioritizes mainlanders (with A$5 million investing in Australia) in granting the Australian permanent residency. We have been working with a number of our partners in SIV and have achieved early success with approved applicants. Overall, Latte with Ray feel the need of Australian Permanent Residency is more an insurance policy for the family and asset diversification outside China.

(3) Last but not least, the newly announced Shanghai FTZ (Free Trade Zone) will open for business today that will make it easier for Australian Wealth Manager expanding their services over there.   

 

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