Given our Asian friends’ propensity to speculate/gamble on almost anything that might offer a capital profit, AND save face if they get it wrong – the statistics quoted in the article below could be understated by up to 90%.
Isn’t the analogy something like “when China feels a ripple, Australia experiences a tidal wave”. Could be BIG trouble heading our way courtesy of this little bit of trouble in China?
Chinese citizens Xin Piao, Raymond Zhang and Wendy Wang were strangers until August, when they joined a group on social media platform WeChat dedicated to “getting refunds on Australian housing”.
Like the rest of the group, which has more than 300 members, they were worried about the slowing Chinese economy and had tried to safeguard their wealth by buying properties in Australia.
But what seemed like a smart idea at the time has turned into a nightmare – their money has vanished, allegedly misappropriated by an investment adviser well known for offering property and mortgage broking in Australia to wealthy Chinese investors.
In China, the 17 luxury offices of that property agent, Ausin China, were suddenly shut down in August. It left behind a trail of missing deposits and failed settlements worth more than A$70 million (US$49.6 million) from some 200 Chinese buyers of yet-to-be-built flats and houses at 15 Australian property projects,
Harry Jin, managing director of Ausin China.
Ausin Group had opened two new offices in China to cash in on the growing demand from China buyers for new Australian properties.
The offices in Dalian and Chengdu took its total number to 15 offices in China.
At the time it was noted Ausin employed over 500 staff working across Sydney, Melbourne, Brisbane, Auckland and London.
The group also offers accounting, property management and migration visa services.
Uglobal Immigration Magazine recently recognized the global investment migration industry’s most influential and powerful leaders with the distinguished Top 100 Global Migration Agency CEOs Awards including Ausin 澳信, Shenzhen, China, and its CEO, Yanqin Zhu.
A Chinese website has reported the relationship between the Australian headquarters and China outfit had “become tense” from 2015 in regard to a “truncation” of commission flow.
Ausin Australia has advised that Ausin China was “expressly prohibited from the collection of any funds”, although allegations have surfaced that deposit funds were paid directly to Mr Jin.
It has been advised the collapse leaves a trail of 130 failed settlements of houses and apartments in Australia across 15 projects in Sydney, Melbourne and Brisbane.
It suggests Ausin was “the first choice business for mainland Chinese sales” for listed companies including Mirvac, Stockland, Leighton Properties, Cedar Woods, SP Setia and Lend Lease.
Ausin’s other developer relationships were listed as including Sunland, Metro Properties, Rose Group, Crown, Glenvill, Satterley, Little Projects and Intrapac.