Chinese millionaires snub Aussie stocks-for-visa programme

Sydney

CHINESE millionaires who happily invested in Australian bonds and real estate to get residency visas are turning up their noses at small-cap stocks.

Just 19 people have sought permits since Australia overhauled requirements for its investor visas in July by forcing applicants to put at least A$1.5 million (S$1.5 million) of the A$5 million they need to spend in the country into smaller equities and another chunk into venture capital. The old system - which was in place since 2012 and drew more than 1,600 applicants primarily from China - let them choose low-risk government debt or popular property investments.

The developments are frustrating fund managers who were hoping for an influx of cash. Australian small-company shares are less volatile and much cheaper than their equivalents in …