Millionaire hunters lure rich Chinese to Australia

Wilson has flown to China three times this year from the Melbourne headquarters of investment firm KordaMentha Pty. He's looking for millionaires to invest at least A$5 million ($4.7 million) and qualify for residency, which gets around China's restrictions on converting currency and sending it abroad.

"The interest is increasing by the day," said Wilson who planned to make his fourth trip this week to corral Chinese investors into the firm's commercial real estate fund targeted at $100 million and aiming for a 9 percent annual return. Referrals in Shanghai, Beijing and Shenzhen have netted miners, property developers and agribusiness entrepreneurs, he said.

The flow of money into Australia could reach as much A$10 billion a year, according to law firm Baker&McKenzie LLP. More than 1,000 people, almost all from China, have applied so far, and more are expected after Canada canceled a similar program in February amid a flood of applications. The number also may be boosted by a government review to hasten approvals. More than 60 funds have been started to capture the money, including by the largest banks in Australia, Bloomberg reports.

Convincing Them

"These are not your usual equity or private-equity type of investors," said Bill Fuggle, a partner at Baker & McKenzie in Sydney who advises immigrants on the process and asset managers on compliance with visa rules. "Fund managers need to visit China and convince them of investing not just for a visa, but in turn to preserve their wealth and improve their lifestyle."

Australia's Significant Investor Visas, which are similar to U.S. EB-5 visas that come with a $500,000 investment minimum and a requirement to create jobs, are designed to attract overseas capital and eventually allow permanent residency in the country.

Immigrants are required to put the A$5 million into government bonds or complying funds that invest in assets such as infrastructure, real estate and agribusiness, for four years, according to the Department of Immigration website. The initial visa requires residency of at least 40 days a year over the period, after which permanent residency can be granted.

The first 188 visa, so-called because the number eight in Chinese sounds similar to the word for making a fortune and is considered lucky, was awarded to an unidentified Chinese toymaker in 2013, according to the government. In May, the government announced a review to "reboot" the investor visa program and ease implementation. Read more