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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fonestar's picture

Canadians are a bunch of dopes.

Pull it!

Grande Tetons's picture

I thought you were Canadian,eh? 

fonestar's picture

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

0b1knob's picture

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

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

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.

headhunt's picture

Charging for services not needed is easy to get right

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!

Flakmeister's picture

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

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.

DavrosoftheDaleks's picture

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

Grande Tetons's picture

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

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.

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.

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.

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.

fonestar's picture

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

Al Smith's picture

it's Canaduh not Christmas Island


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.  

Ourrulersknowbest's picture

You're a penis and so is your PAL


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 ? 

bobola's picture

fonestar is Canadian.

well said...


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. 

fonestar's picture

fonestar is a welcome addition to any nationality.

Thank-you for choosing fonestar.

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.

Stoploss's picture

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

fonestar's picture

Nope.  Bank of Canada holds barely any gold.

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.

fonestar's picture

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

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.



Al Smith's picture

true, just like the US

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

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. 

SheepDog-One's picture

I suppose Cyprus sets the precedent.

Doubleguns's picture

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

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.

SheepDog-One's picture

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

pragmatic hobo's picture

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

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.

youngman's picture

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

Flakmeister's picture

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

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!!!!

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.

jcaz's picture

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

Unknown User's picture

They are backing Putin.