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Chinese "1%" Threaten Lawsuit Against Canada For Shutting Visa-For-Cash Scheme

Tyler Durden's picture




 

When Canadian authorities scrapped their 'investor visa' scheme a month ago, we warned that the nation was removing a critical pillar of support for its real-estate bubble market. However, with an estimated 45,000 Chinese millionaires still in the queue, the wealthy hoping to get their cash out of China are not happy. As The South China Morning Post reports, a group of wealthy mainlanders has criticized the Canadian government for scrapping its investor visa scheme and are threatening legal action if the decision is not overturned - arguing "we had set aside a lot of money to meet the investment requirements and over the years passed up on many opportunities... A refund of our application fees will not make up for all the preparation put in."

The Canada real estate bubble is alive (and well enough for now)...

Deutsche Banks's house-price-to-rent index says Canada has the most expensive housing market in the world - 60% over-valued...

 

"Canada, for example, is very open to foreign investors, which means that in an age of unprecedented global liquidity cash-rich wealthy individuals who are looking for places to park their excess funds can do so in its housing market far more easily than in Japan, with its closed system. "

 

As it's home price index hardly missed a beat while the US plunged... (different scales but point is to illustrate drastic difference when financial crisis started - and where the liquidity went...)

 

But the scrapping of the visa scheme threatens to remove a key pillar from that:

The scheme has allowed nearly 100,000 wealthy Hongkongers and mainland Chinese to move across the Pacific since 1986.

But as The South China Morning Post reports, the Chinese are not happy,

A group of wealthy mainlanders has criticised the Canadian government for scrapping its investor visa scheme and are threatening legal action if the decision is not overturned.

 

More than 10 people who had applied for the visa met with reporters in Beijing yesterday to air their grievances. The group said they had wasted years of time, effort and money preparing to move to North America.

 

...

 

An estimated 45,500 Chinese millionaires who were still in the queue for visas will have their applications "eliminated" and their fees returned.

 

...

 

"We have set aside a lot of money to meet the investment requirements and over the years passed up on many opportunities," he said.

 

...

 

"Moving to Canada has been a dream of mine since witnessing what happened in 1989 as a student over there on this main thoroughfare," he said, pointing to a road passing Tiananmen Square where the crackdown on pro-democracy demonstrators took place.

 

"I thought Canada was a place that underpins justice, trust and democracy, but the abrupt, unilateral decision to scrap the scheme has left us very, very disappointed," he said. "A refund of our application fees will not make up for all the preparation put in."

 

Larry Wang, the president of the immigration consultancy firm that organised the meeting with reporters, said he would help applicants take legal action if the decision was not overturned.

 

...

 

"A sovereign country, of course, has the right to make such a move, but it's unfathomable how a democratic and human-rights-respecting country like Canada just cut off applications like that, without regard to those who've been preparing for the move for years,"

In other words, we want to get our money out of this controlled nation and are upset that we were not higher on the list... especially now that we see local authorities starting to tamp down the bubble of local real estate that we have previously speculated in...

 

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Wed, 03/05/2014 - 13:36 | 4512402 fonestar
fonestar's picture

Canadians are a bunch of dopes.

Pull it!

Wed, 03/05/2014 - 13:38 | 4512421 Grande Tetons
Grande Tetons's picture

I thought you were Canadian,eh? 

Wed, 03/05/2014 - 13:40 | 4512430 fonestar
fonestar's picture

fonestar's PAL is currently situated in Canda.  fonestar is a netizen and resident of the cryptosphere.

Wed, 03/05/2014 - 13:42 | 4512446 0b1knob
0b1knob's picture

The Chinese can still get money out of China.  Can Americans get money out of America?  (See FATCA)

Wed, 03/05/2014 - 13:55 | 4512509 damicol
damicol's picture

Yep its not as hard as you might think to escape Fatca..

 We do it for US individuals and companies   by setting up offshore companies they control.

It all in understanding how foreign jurisdictions treat different classes of corporation who the nominee directors are and the way you set control of the shares and accounts.

Many people, once it is set up comment on how ridiculously easy it is, and not once in 8 years has any client ever been stuffed by fatca.

It is about sovereignty and jurisdiction and how to circumvent US sovereignty so that it becomes foolproof.

We can do the same to circumvent obummer care.  Ridiculously easy and foolproof but you have to have the knowledge of exactly what’s needed to do it

Wed, 03/05/2014 - 14:10 | 4512586 Zé Cacetudo
Zé Cacetudo's picture

"Not once in 8 years" - really? FATCA was passed as part of the HIRE act in 2010. You and your alleged clients are fools.

Wed, 03/05/2014 - 15:42 | 4513021 headhunt
headhunt's picture

Charging for services not needed is easy to get right

Wed, 03/05/2014 - 15:53 | 4513083 jaxville
jaxville's picture

All those Chinese immigrants have to do is declare themselves Jewish. Our bureaucrats will not hesitate to get on their knees and start licking assholes. Welcome to Canada!

Wed, 03/05/2014 - 16:19 | 4513195 Flakmeister
Flakmeister's picture

There is a hint of Wild Rose about you....

Wed, 03/05/2014 - 16:38 | 4513301 Four chan
Four chan's picture

Funny how even the richest chinese slave doesn't view himself as a slave

as he tries to escape his slave state. And the willing, gleefully willing slaves of canada,

accept their supplication to their sovereign and seek no escape.

then you have the american slave shackled to the fed by debt and the tyranny

of the out of control government by taxation without representation, as the whole

structure of the constitutionally limited republic is turned on its head.

and of all these slaves around the world the only free person left is the

one created with paper, the corporation.

maybe the supreme court was recognizing this observation i make, or maybe they are just morons.

Wed, 03/05/2014 - 21:43 | 4514808 DavrosoftheDaleks
DavrosoftheDaleks's picture

If only we could take those 45000 millionaire chinese and get them to buy in Detroit...

Wed, 03/05/2014 - 13:43 | 4512449 negative rates
negative rates's picture

Life beyond Pluto can be quite cold.

Wed, 03/05/2014 - 13:43 | 4512452 Grande Tetons
Grande Tetons's picture

Plus one for not taking the last refuge of the scoundrel. 

Wed, 03/05/2014 - 14:00 | 4512541 NotAMathWhiz
NotAMathWhiz's picture

Fonestareze: fonestar is a netizen and resident of the cryptosphere.

Translation: fonestar lives in his mom's basement with a yellowing P3 computer with a 14K modem, and now that his bitcrap is soon-to-be worthless he has no plans other than to hang out on ZH and irritate people.

Wed, 03/05/2014 - 16:40 | 4513325 fonestar
fonestar's picture

fonestar lives in a renovated, partially furbished attic.  fonestar is not currently on talking terms with his family after finally convincing them to buy Bitcoin at $1100.

Wed, 03/05/2014 - 17:09 | 4513491 NotAMathWhiz
NotAMathWhiz's picture

Sorry, man, but that made me laugh.  Not everyone would admit that, I can only imagine your pain.  I sincerely hope it works out for you.

Wed, 03/05/2014 - 14:26 | 4512668 angel_of_joy
angel_of_joy's picture

Fonestar is a m0r0n (both real & digital), and an annoying one no less.

The move on visas was "sugested" to the Canadian authorities by Beijing, in exchange for an increase of Canadian exports (read resources) to China. The big bosses in China got pissed off by the amount of money siphoned out of the country through this scheme (among others).

On top of it, Canadians will hold federal elections sometime next year, and this is popular with most people.

Finally, the RE prices got beyond absurd in both Vancouver and Toronto, and the fed gov is scrambling to slow them down. They'd rather tackle the bubble themselves and try to control the process, rather than having somebody else doing it for them in complete dissaray.

Wed, 03/05/2014 - 16:45 | 4513354 fonestar
fonestar's picture

When Canadians were contacted in a recent Black Angus poll, 91% said they agreed with fonestar on everything.

Wed, 03/05/2014 - 23:14 | 4515196 Al Smith
Al Smith's picture

it's Canaduh not Christmas Island

Wed, 03/05/2014 - 16:20 | 4513201 SILVERGEDDON
SILVERGEDDON's picture

Fonestar is a denizen of the Bitcoinosphere.

Rhymes with Gollum, and " My Precious ".

How's tha bitcoin volatility workin' for ya, fonestar ? 

Sure makes metals market manipulation look like a millpond in comparison to a typhoon in the Pacific.  

Wed, 03/05/2014 - 16:48 | 4513361 Ourrulersknowbest
Ourrulersknowbest's picture

Fonestar
You're a penis and so is your PAL

Wed, 03/05/2014 - 16:28 | 4513237 SILVERGEDDON
SILVERGEDDON's picture

Real Canadians are sensible people. The Chinese elite are pissed off that their safe haven for all the money they have stolen from the glorious state, and it's glorious people in the Motherland no longer have a safe haven to stash it in. Ever siince the Hong Kong Panic in 1997, the upper crust has counted on bailing the fuck out of China with anything and everything they could steal and stash in Canada. Free ride is over, motherfuckers. Now, having a half milion bux to invest in Canada don't automatically make you a citizen like it used to. Now, you gotta be a worthy human being and apply for citizenship just like everyone else. Don't like it ? Well, then, taker off, eh ? 

Wed, 03/05/2014 - 13:51 | 4512490 bobola
bobola's picture

fonestar is Canadian.

well said...

Wed, 03/05/2014 - 16:32 | 4513262 SILVERGEDDON
SILVERGEDDON's picture

Fuck that - fonestar is an insult to Canadians. 

Hockey sticks at dawn on the ice at 20 below with 10 hockey pucks each, motherfucker.

I fart in the general direction of nancy boy bitcoin troll bitchez. 

Wed, 03/05/2014 - 16:38 | 4513308 fonestar
fonestar's picture

fonestar is a welcome addition to any nationality.

Thank-you for choosing fonestar.

Wed, 03/05/2014 - 13:52 | 4512497 Canadian Dirtlump
Canadian Dirtlump's picture

Amen Dwaynestar. I can't wait for this bastard market to have a gran mal seizure and watch some blood flow down the streets. YOu and I will go dumpster diving for a Calgary penthouse so you have a place to squat when you visit your brother and we party like beasts.

Wed, 03/05/2014 - 14:06 | 4512569 fonestar
fonestar's picture

Amen and praise Satoshi!

Wed, 03/05/2014 - 13:36 | 4512406 Stoploss
Stoploss's picture

Holy fuck i hope Canada has a veritable assload of gold on hand and ready to ship.....

Wed, 03/05/2014 - 13:38 | 4512418 fonestar
fonestar's picture

Nope.  Bank of Canada holds barely any gold.

Wed, 03/05/2014 - 14:00 | 4512530 Newfie
Newfie's picture

Canada has also started to prohibit more long guns this past week for confiscation.

A defenseless nation with barely a standing army.  Sounds ripe for the pickings.

 

I'm surprised Zerohedge has not picked this confiscation story up yet.

Wed, 03/05/2014 - 14:08 | 4512577 fonestar
fonestar's picture

They have been after the CZ858 and Green rifles for awhile now.

Wed, 03/05/2014 - 14:03 | 4512554 Canadian Dirtlump
Canadian Dirtlump's picture

a number of years ago I saw a hilarious infographic showing the physical size of the gold we hold versus the physically discombobulated mass of nerdliness that is Stephen Harper and he was physically larger than our gold.

 

 

Wed, 03/05/2014 - 23:22 | 4515223 Al Smith
Al Smith's picture

true, just like the US

oh wait - that's right China is holding most of the gold

Wed, 03/05/2014 - 13:42 | 4512441 omi
omi's picture

First of all who are the Chinese?

Second why would they have legal power to sue.

In big cities the CAD graph is faaaaaaaaar stepper by thiiiiiiiiiiiiiiiiiiiiiiiiiiiiiis muuuuuuuuuuuuch. 

Wed, 03/05/2014 - 13:44 | 4512455 SheepDog-One
SheepDog-One's picture

I suppose Cyprus sets the precedent.

Wed, 03/05/2014 - 14:47 | 4512770 Doubleguns
Doubleguns's picture

Spain offers the same deal and they have lots of real estate for sale.....cheap. Chinese should look there or Canada should point them there. 

 

http://www.iexpats.com/golden-visa-offer-passports-cash-investors/

Wed, 03/05/2014 - 13:42 | 4512444 buzzsaw99
buzzsaw99's picture

hoary fuk

Wed, 03/05/2014 - 16:06 | 4513139 NihilistZero
NihilistZero's picture

Chinese 1% expats are in for a rude awakening when the tide turns.  Local governments are going to fuck them out of any and all property roghts when the pitchforks and torches come out (figuratively speaking).  Look for HUGE taxes against Chinese nationals "property" to be levied.  In case they forgot to read the POTUS executive order if we ever enter ANY form of hostility with China, those nationals property rights are null and void.  If they're lucky will apologize for it 60 years later LOL!

Fuck the Chicoms.

Wed, 03/05/2014 - 13:42 | 4512445 SheepDog-One
SheepDog-One's picture

We're the 1%! Experiencing a loss is simply inconceivable!

Wed, 03/05/2014 - 13:44 | 4512451 pragmatic hobo
pragmatic hobo's picture

are you sure the above didn't come from the onion?

Wed, 03/05/2014 - 13:56 | 4512520 forwardho
forwardho's picture

Got to be a parody.

45,000 millionaires and their loot are stuck in China one step removed from a bullet in the head.

All their kin folks said wang move away from there. They said californy is the place you aught to beeeee.... So they loaded up the G5 and the moved to beverly.

Wed, 03/05/2014 - 13:45 | 4512459 youngman
youngman's picture

45,000..man that would scare any dog that lives in the neighborhood where they are buying....and they would all locate together...no Canadian spoken there...and no Hockey players either

Wed, 03/05/2014 - 13:57 | 4512521 Flakmeister
Flakmeister's picture

You clearly have never been to Chinatown in Vancouver...

Wed, 03/05/2014 - 13:58 | 4512535 oddjob
oddjob's picture

try Richmond.

Wed, 03/05/2014 - 14:17 | 4512618 Flakmeister
Flakmeister's picture

No thanks...

Wed, 03/05/2014 - 17:47 | 4513661 JuliaS
JuliaS's picture

Vancouver is Chinatown.

Wed, 03/05/2014 - 13:47 | 4512469 Rising Sun
Rising Sun's picture

Chinese enter Canada, suck off the socialist handouts like healthcare and education and then move back to China where they spend most of their time.

 

Canada has a huge problem with Arabs doing the same thing.

 

Good for Canada - fuck the bloodsucking vermin!!!!

Wed, 03/05/2014 - 13:55 | 4512512 john39
john39's picture

those blood sucking vermin propped up the real estate market in canada, probably paid a fair amount of tax as well.   curious why Canada would make this move now?  plenty of rich chinese still looking to get out of china with their funds intact.    probably head to south american now, USSA only allows poor drug dealers intot the country.

Wed, 03/05/2014 - 14:03 | 4512556 jcaz
jcaz's picture

They haven't-  it's all about negotiation-  the price just went up, is all......

Wed, 03/05/2014 - 17:30 | 4513594 Unknown User
Unknown User's picture

They are backing Putin.

Wed, 03/05/2014 - 23:09 | 4515168 Al Smith
Al Smith's picture

you mean Puuptin?

Wed, 03/05/2014 - 13:47 | 4512470 buzzsaw99
buzzsaw99's picture

Wow, it must really suck (even worse than I thought) living in China if they're willing to SUE to get INTO Canada. lulz

Wed, 03/05/2014 - 13:57 | 4512528 Flakmeister
Flakmeister's picture

Ironic, eh?

Wed, 03/05/2014 - 13:50 | 4512486 q99x2
q99x2's picture

Put another way, "Western oligarchs begin to protect their turf by refusing Chicoms visas."

Wed, 03/05/2014 - 14:01 | 4512549 Comte d'herblay
Comte d'herblay's picture

That's like Sofia Vergara complaining about the falloff in men who would kill for one week with her on a desert island, from a billion willing males (and untold numbers of lesbians), to 999,999,999.

Life is so unfair sometimes. 

Wed, 03/05/2014 - 14:05 | 4512559 LawsofPhysics
LawsofPhysics's picture

Good luck with that.  Apparently, the 1% are the same the world over.

< shocker >

Roll the motherfucking guillotines all over the world, nothing changes otherwise.

Wed, 03/05/2014 - 14:14 | 4512607 youngman
youngman's picture

trends are trends...they will find another IN place and start buying there....where one goes...and tweets about how great it is...500,000 follow....quite a market mover and neighborhood changer...

Wed, 03/05/2014 - 14:20 | 4512635 Rock On Roger
Rock On Roger's picture

Sorry fuckers, my house is a home, it is not a bubble.

I consider my home is an invaluable liability.

It is not a fucking investment, it doesn't make a profit, it costs to maintain it.

If you're stupid enough to think a house is an investment, well then you deserve to lose your money.

 

Stack On

Wed, 03/05/2014 - 14:20 | 4512637 taketheredpill
taketheredpill's picture

 

 

 

"A sovereign country, of course, has the right to make such a move..."

 

Thank you for the clarification.

 

 

Wed, 03/05/2014 - 14:54 | 4512662 Hongcha
Hongcha's picture

Forty-five thousand applicants?  Whose number is that?

Mainland Chinese by & large are attuned to thrift, saving, hard work and taking care of their families. Those traits, plus their tidy stashes of dollars, make them welcome immigrants in my book.

Drawbacks are few and tolerable and I am LOL as I type this because I know this VERY well; poor driving skills, a tendency to fight for the last nickel, lack of knowledge of our staple foods (milk, coffee and bread come to mind - theirs is abysmal) and a tendency to smoke heavily (the latter not a concern here).

BC's loss is SEA's and No. Cal.'s gain.  A rising tide lifts all boats.  Bring 'em.  

Wed, 03/05/2014 - 19:33 | 4514112 Let them eat iPads
Let them eat iPads's picture

America can have these fucking parasites.

 

Wed, 03/05/2014 - 14:30 | 4512687 Itchy and Scratchy
Itchy and Scratchy's picture

Send them to Ukraine ... after the fires go out!

Wed, 03/05/2014 - 14:34 | 4512709 XRAYD
XRAYD's picture

We dont need no stinking millionaires.  Just indentured coolies, to build rail roads, do laundry, and open Chinese buffets to serve cheap food.

Wed, 03/05/2014 - 14:39 | 4512735 Itchy and Scratchy
Itchy and Scratchy's picture

Didn't anybody tell them they could buy a house in Detroit for a $1 buck!

Wed, 03/05/2014 - 14:39 | 4512736 Dollarmedes
Dollarmedes's picture

The justification for this will be the same as the US defaulting on Social Security payments:

As a sovereign nation, we can break our promises if we want to.

Wed, 03/05/2014 - 15:05 | 4512845 thorgodofthunder
thorgodofthunder's picture

"A group of wealthy mainlanders has criticised the Canadian government for scrapping its investor visa scheme and are threatening legal action if the decision is not overturned.

 More than 10 people who had applied for the visa met with reporters in Beijing yesterday to air their grievances. The group said they had wasted years of time, effort and money preparing to move to North America."

 

More than TEN PEOPLE?

???

ONION?

Wed, 03/05/2014 - 15:58 | 4513102 Peter Pan
Peter Pan's picture

45000 applicants for Canada?

How many more for Australia, New Zealand and other places?

What does this say about China's stability?

Wed, 03/05/2014 - 16:30 | 4513251 giggler321
giggler321's picture

They did the same thing to 280,000 waiting 5years or more to come in as federal skilled works.  Haper's gov just said, why not apply to NZ or OZ if you want a new life.

 

How many finanical products would you have applied for, left in say $1000US for 5 years and see -neg returns?  Lots right in light of days world?  well the only diff is they were told on out set it was first come, first served and points based in the case of FSW.  No mention of we'll f*** U in a few years and thanks for all the fish.

Wed, 03/05/2014 - 16:09 | 4513151 unrulian
unrulian's picture

So we have fonestar and Bieber?

Fuck

Wed, 03/05/2014 - 16:44 | 4513336 Kreditanstalt
Kreditanstalt's picture

45,000 idiots fleeing the Wild West Capitalism of China ~ with opportunity, low, low taxes, affordable labour costs and light (and wonderfully inefficient!) regulation ~ for Socialist Canuckistan. Go figure.

Wed, 03/05/2014 - 17:56 | 4513701 mumbo_jumbo
mumbo_jumbo's picture

the USA -14% price/income??? what fucking crack are you smoking? a starter home in my area is 7X's the average income

Wed, 03/05/2014 - 18:27 | 4513848 The Shape
The Shape's picture

Don't worry wealthy China man, Australia will still bend over and grab its ankles for you.

Wed, 03/05/2014 - 18:37 | 4513882 wasta
wasta's picture

It is about time. I lived in East Asia for 3 years. Many people always told me Vancouver is amazing. It was one of the first places I visited when I moved back to North America. The meanest Asians in the world live in Vancouver. The locals talk about how awful Vancouver has become in the last 15 years. Even people from other parts of Canada I met talk bad about Hong Couver, it's overpriced real estate and horrible people (non-asian included). Victoria is lovely though.

If the citizens of Candada refuse to control the real estate and immigration market privately then a bit of praise is deserved to the Canadian government for exercising some amount competence. Also, just because some immigrants are hard working doesn't mean they will add any value to developed economies like that of Canada.

Thu, 03/06/2014 - 16:32 | 4518457 pashley1411
pashley1411's picture

dual Canadian citizenship.   Any of those mysterious billionaire Chinese women need a "get out of jail free" card, I have 4 limbs, 2 eyes, most of my hair :).

Mon, 05/12/2014 - 00:39 | 4749875 hughtravis
hughtravis's picture

Lawsuit is very expensive. I've heard of this. A case has been lodged against Chase bank for allegedly giving a Texas man cardiac arrest after foreclosure notices were sent to him. Harry Engel's deadly heart attack (which Chase denies responsibility for) makes him another victim of foreclosure. You can use an installment loan to pay your mortgage this month if you
need help.

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