China Railway Investments Group Limited
Introduction of Investment Immigration for the U.S. East Coast High Speed Train Project
(Draft)
I. The U.S. Investment Immigration
The so-called EB-5 is an immigration act started by the U.S. Congress in 1990. The purpose of the act is to promote employment in the less developed regions in the United States and to help create more jobs.
1, Requirements for the EB-5 Investment Immigration
1.1, $ 1,000,000 investment. In some areas, such as high unemployment areas, the investment could be half of the amount. That would be $ 500,000. For the applicants of EB-5, the $ 500,000 fund should be legitimate income or lawful loans.
1.2, the fund should transfer to the United States bank’s account and invest on so-called "targeted employment area", which include areas outside the metropolis, outside the cities and towns with a population of more than 20,000 and the area with an unemployment rate 150% higher than the national average.
2, Two Types of Investment Immigration
2.1, the type of regional center, one should apply before the project, and the USCIS approves.
2.2, the type of retail. Any project, as long as it hires the number of workers required, one could apply for the investment immigration. For example, one invests on a farm, as long as the 500,000 dollars transfers into the U.S. account and the company is set up. It will only need to hire 10 workers to meet the demand.
3, The Return of Investor’s Fund
When investor’s immigration status is approved, and one gets his green card, the full amount of the investment fund should be returned to the applicant. Usually it will take 4 or more years, less than 5, to get the green card.
4, The Risk of the U.S. Investment Immigration
The risk of investment in the United States is relatively low. Many people want to immigrate to the U.S. It is safe for the rich to bring their asserts to the United States.
5.The Benefits of Investment Immigration to the United States
It is beneficial to have more rich people apply for the U.S. immigration. The report from The Association to Invest In the USA(IIUSA) shows that in 2013 the United States gained $ 1.83 billion through immigrants’ investments. In 2012, the immigrants’ investments created more than 42,000 jobs and increased taxes over 712 million US dollars in the U.S.
According to the statistics from USCIS, since 1990, EB-5 has brought a total of $ 8.6 billion investment and 57,300 jobs.
II. Chinese Rich People are the Main Source of the U.S. Investment Immigration
1, Over 80% of the U.S. Investment Immigrants are Chinese
China has become the fourth largest country which exports migrants. The U.S. is the first choice for Chinese rich people who consider immigrating. Since Canada had canceled the investment immigrant’s project, Chinese people who applied for investment immigration to the United States had greatly increased. The U.S. government warned that the annual ten thousand EB-5 immigrant investor visa quotas may run out this summer estimated that over 80% will be granted to the Chinese people.
2,The Number of Chinese Investors Who Apply for U.S. Immigration Rises Each Year
Center for China and Globalization(CCG) showed in the latest survey that in recent years, the number of China's investment immigration has rapidly increased. Especially in the past three years, more and more Chinese investors immigrate to the U.S. In 2010, there were only 772 EB-5 conditional green card holders. And the number has increased to 2,408 in 2011. In 2012, that number became 6,124, 2.5 times of that in 2011, and 7.9 times in 2010. In 2013, the number of immigrants applying for EB-5 reached a record high, and 6,895 Chinese people who received green card through that project, accounting for the vast majority.
The information published by CGG on 21th also shows that in 2011, those Chinese people who had invested more than 6 million Yuan abroad have assets about 33 trillion Yuan in China. 2.8 trillion assets have been transferred overseas which accounts for 3% of China's GDP in 2011. Hong Kong, the United States and Canada had become their main destinations, respectively, accounting for 22%, 21% and 16% of the total assets, followed by Switzerland (9%), Singapore (6%) and Australia (5%).
3,Rich People in the Mainland of Chinese Hide 4 Trillion in Assets Abroad, Accounting for 30% of the National Fiscal Income
By the end of 2013, the survey form Hurun report showed that, in 2013 the number of rich people who have immigrated or are applying for immigration has increased 6.7% and has reached to 64% compared that of 2012. One third of which are cent millionaire.
The loss of wealth due to the immigration of the rich is also amazing. Boston Consulting Group had estimated that the amount should be $ 450 billion. The agency also said that overseas investments of Chinese wealthy people are expected to double in the next three years.
The research of Wealth Insight, London wealth consulting organization, reported that about $ 658 billion assets of Chinese wealth now hide overseas, equivalent to 4.0796 trillion yuan, account for thirty percent of China's fiscal revenue.
The fact that Chinese wealthy people prefer to immigrate abroad has no doubt caused the loss of both Chinese wealth and talents. There has been a voice of preventing Chinese fortune from flowing out constantly in recent years. From January 1, 2014, Chinese people have to truthfully declare overseas assets according to the latest policy. It still remains to see how it would impact the immigration of the rich.
4, in 2013, 9,300,000 Chinese Immigrated Abroad, USA and Canada are Preferred
There has been an increasing demand for Chinese foreign immigrants in the past two years. According to the "World Migration Report" from United Nations in 2013, after India, Mexico, Russia, China has become the world's fourth largest migrants exporting country with a number of 9.3 million. Released on 6
th, the "2014 Hurun Chinese investment immigration White Paper" pointed out that the United States and Canada are the places that the high net worth Chinese people wants to go most. And the main reasons for their overseas investments are asset allocation, risk diversification, and children's education
The United States and Canada are their primary choices which account for 52% and 21%, respectively. Although Canadian investment immigration policy has changed dramatically (refer to the close of investment immigration program in 2014). Then immigrants tend to invest in Australia and the European countries, accounting for 9% and 7%, respectively. When concerned about cities, Los Angeles, San Francisco and Vancouver are their most desirable destination. Followed are New York, Toronto and Seattle.
III. Investment Immigration Opportunities in the U.S. East Coast High Speed Train Project
U.S. East High Speed train project will build a comprehensive high Speed railway economy, which will establish a combination of rail road with towns and cities according to TOD (public transport oriented development) model. Thus the project will create many investment immigration opportunities.
1, the total mileage of the east coast high speed railway would be around 7,100 km. We intend to issue $ 500 billion "The U.S. East Coast high-speed rail bonds" to invest in high speed rail railway, operating passengers and cargo transportation business. The purchase of the Bonds may lead to investment immigration.
2, support industries of the east coast high speed railway (e-commerce, cultural media, catering, trade, security, property management, tourism, hotel and other projects) may still create investment immigration opportunities.
3, property management of the U.S. East Coast High Speed train Station and property projects in surrounding areas could also bring investment immigration opportunities.
Businesses around Railway station mainly focus on dining, shopping, and lodging. We plan to build 20,000 square meters business area for each train station. And a total of 60 train stations could create 1.2 million square meters business areas. Residential and commercial properties in surrounding areas will base on "high-speed rail village" and "residential housing for Chinese immigrants". We plan to build "high-speed rail Village" around each station as large as 900,000 square meters, and it could have 3,000 households. 60 "high-speed rail villages" will bring about 5,400 square meters’ residential area which could hold 180,000 households. If each household could have 3 people, a total of 540,000 people will be settled. Each household would invest $ 500,000 dollars for immigration; a total of $ 90 trillion funds will be generated.
IV. Establishment of the U.S. East Coast Train Investment Immigration Corporation
1, operating business of labors and investment immigration services related to high speed train projects;
1.1 staff required by the U.S. East Coast High Speed Train Corporation;
1.2 staff required by the supporting industries of the high speed train;
1.3, property owners around high speed train station;
1.4, bond owners of the U.S. East Coast High Speed Train Corporation
1.5, investors of supporting industries of the high speed train;
1.6 Other investment immigration.
(funds generated through above won’t be less than $ 100 billion)
2, composition and responsibilities of stockholders
2.1, the U.S. East Coast High Speed Train Corporation (providing investment immigration quotas);
2.2 China Railway Investments Group (need approval from the Chinese government);
2.3 Investors (provided starting funds);
2.4 Investors (provided starting funds);
2.5 Investors (provided starting funds).
3, Place of registration:
Hong Kong, China.
4 Offices:
4.1, we plan to have 35 offices in China, one for each administrative center (Including 23 provinces, 5 autonomous regions, 4 municipalities and 2 special administrative regions and 1 in Shenzhen DC)
4.2,6 Offices will be first established in Hong Kong, Beijing, Shanghai, Guangzhou, Chongqing, and Wuhan.
V. Plans for Starting Funds
1, provided by investors of the U.S. East Coast High Speed Train Corporation
2, supply the costs in Hong Kong and Beijing’s office first.
3, and then supply Shanghai, Guangzhou, Chongqing, Wuhan Offices.
4, supply other offices and the need of other business.
XI. Sources of Income
1, the U.S. East Coast High Speed Train Corporation will pay the fees of XX% of the investment immigration fund
2, Client who invest will pay the fees of XX% of the investment immigration fund
(If the investment immigration fund is $ 100 billion dollars, the U.S. East Coast High Speed Train Corporation pay a 2% fee, Client who invest pay a 4% fee, all that can generate a fee of $ 6 billion)
China Railway Investments Group Limited
June 21, 2014