- Chinese millionaires where does the money come from?
(fluttering money)
Now you see a lot of affluent Chinese coming
to North America they're going to different countries
outside of China, buying up companies
buying up land, buying properties
buying a lot of luxury goods and automobiles
and you ask yourself where does the money come from?
Why do they have so much money?
Why are they able to go to a country
and buy a property worth millions of dollars cash?
No mortgage needed that's what we're going to
talk about today, so Jennie what do you think
where does the money come from?
- I think because firstly 20 years ago like China
the economy is booming and then
like a lot of government owned
company that have to lay off a lot of workers employees
so it forced them to actually work for themselves.
They have to start their own business.
They have to do their own even little retail store
- Because they couldn't get a job
- Exactly, they had to work their way up
and after 20 years of course
they're doing to a degree so that's why
they just make more and more money.
- Makes sense, what about Victoria
what do you think?
- Well it's interesting because China as a country
technically they're a communist government
but a real communist government cannot
pump out that many billionairs
- Yes - in a country.
So it's on the surface on paper that may be the case
but in fact there's been a lot of growth definitely
and there's forecasts of many more growth
in different industries and sectors as well
and you can see that in China they are also targeting
other countries as well, they want to invest
in other countries as you can see
billionaire the Wander Group
the founder of the Wander Group Wang Jianlin
he has bought out AMC Theaters
he has bought out the Legendary Films
so you can see that they have a lot of foresight
into investment and we scale that back
and we look at the farmers, right
you know farmers that have been generations
and generation of people that have been just farming
their whole lives all of a sudden
the Chinese government may want to do some development
or the private sector may want to buy some
land and do development.
- Expanding right? - Exactly
and all of a sudden these farmers that have been
just farming their whole lives have become millionaires.
- Overnight
- Overnight they have all this cash and that's
really where it's come from
we call it the new wealth and it's just been growing
like crazy for the past five to eight years.
- Yeah I think at first the different ways
that generational Chinese immigrations to North America
the first wave of immigration they were coming here
they were workers, we're talking about
they're building the railroad they're making
all the dirty work and they get killed
and all that stuff and that's just what happened
that's part of the history
and then the second wave then they bring the family
and the third wave probably then it's more
starting a small grocery shop
- A Chinese restaurant
- A Chinese restaurant every fricking town's got
a Chinese restaurant and so you see that a lot
and then the next wave is they're a little more educated.
They have some education, right, maybe middle class
they immigrate here with their kids and stuff like that
and then you see a shift when China
when there's so much wealth being generated
then a new wave of immigrants where now
they're coming to buy properties
they've got so much more money
they want to transfer their wealth
that they've made in China to outside of China
because they think it's safer.
In terms of China they might think the government
might take it away like any time
and especially with so much corruption
and in China unfortunately any of the big companies
I won't say every single company
but a lot of big companies there's always something
kind of under the table and it's not always so clean.
Now the new, the latest wave of immigrants I believe
now is not just wealthy individuals, more corporations now.
They're expanding internationally, they're out here
actually buying company acquisitions
their buying lands, they're buying like food
they've buying agricultures it's a different thing
Even a few years ago when we go to watch movies
we don't see these opening intro slide with all these
other Chinese companies.
Latest if you watch a lot of the big big
blockbuster movies funded by Chinese companies
you see it again and again and again.
- Mission Impossible - Mission Impossible
I think fast and furious. - Yes
- Transformers.
- Yes Transformers for sure. - Obviously
Transformer four right, which got a lot of critics
(laughter)
- The milk
- The milk, shu one milk right?
It's just like shameless plug in the movie
because well they pay a lot of money to be in the movie
so that's kind of interesting.
Now for most people they don't understand
and they might think that the affluent Chinese
they buying these big houses they're flaunting their wealth.
I think to a degree it may be true
but I think it's also that to them because if they
take all their money here they
want to put it into something.
And if they buy an automobile in here compared
to China they have double taxation so it's
a lot more expensive if they buy a Mercedes
or they buy a BMW it costs twice as much or more.
If they buy a house in China all they could afford
is a small condo and they sell that and here
they can buy a pretty nice house.
- [Jennie] You're talking about a big city like Beijing
- Beijing right. - For sure those places
So that's where the money comes from.
What about in terms of people
so you have people who are maybe entrepreneurs
you have people who are maybe second generation
what do you think are the different types of
people that's got money?
- You mean regarding of first generation
and second generation?
- Yeah, first generation and even types of first generation.
- Well I think the first generation probably the first type
is they're entrepreneurs themselves.
- They make their money on their own.
- Yes, they make they make the money on their own.
And I think the second part is just
even though a lot of people right now they're working
like inside an office maybe they move to a
certain level like to move to manager
or sometime like a director kind of position
they just have more salary so they can afford
actually to immigrate or even send their kids
- To a better education.
- Yes for a better education
That's very common actually.
- Yeah, cause they always want to do it for their kids
right? - Exactly.
- Send them to a better environment, get educated
learn to speak English.
- Yeah, even though we're talking about middle class
in China right now they can totally afford
sending their kids to US - Yeah
- Or Canada for education.
- Victoria, what do you think?
- Yeah, I think for the second generation as well
because they have the freedom to take more risks
they have money from the parents to support them
you know different from the previous generation
where when they take risks if it doesn't work out
they just might become homeless.
So definitely the trend with the millennials as well
they're more attracted to concept of social enterprise
social entrepreneurship where what can we do
to start something new but at the same time
be able to help our community and help our country.
So definitely the new generation has that seeded
in their mind and it's really helped with the boom
of starting new businesses and new growth.
- And adding to that actually I found it was really funny
there is actually a lot of MBA or EMBA classes
in China - A lot
- and then they're charging a lot of money for that class
and then we're talking about probably 50,000 US dollars
for one class and then a lot of the CEOs
maybe they were like selling their land
didn't get much education when they were young
but now they become the big CEOs
so they want to learn more knowledge so they
go to all this like MBA class to upgrade themselves
and even send their kids to do those classes.
You don't see this a lot in North America
that's just very interesting.
- You can see I think the media
even you watch a lot of YouTube videos
you type in these type of Chinese millionaires
and I think the media really they...
Of course there are a lot of spoiled rich kids
I mean just like there are a lot of spoiled
rich kids in China, there are a lot of
fucking rich kids in North America too it's the same.
But I think a lot of them because in the Chinese culture
in America, North America it's a little bit different.
If you have a CEO you don't necessary pass down
your company to your son, you pass onto whoever's
most capable you right hand person been with you
for 20 or 30 years, right?
Microsoft, Apple, all these companies
but the Chinese culture usually it's more you have
this kind of this is empire you pass onto your kids
and so a lot of
- Family - Family family owned
they trust each other, same blood right?
So I can see a lot of them first generation
now they've made the money maybe they weren't
very well educated but they wanted the kids
to be well educated that they could take over.
So it's a kinda legacy kind of generational wealth
and they can see all these young kids
a lot of them they are very well educated
very smart and unlike their parents
they got their education in North America.
They can speak English fluently
they understand the Caucasian the way that they manage
the one that they grow the differences
and now they take it to China or they want to expand
So I think a lot of...
So of course they are spoiled rich kids
but I think there are a lot of smart entrepreneurs as well
- [Jennie] Just like (foreign language name) son right?
- Yep. A lot of them are very very smart
so don't take it out of context
you read something or that damn guy
driving a Lamborghini or that guy driving a Ferrari
that's very shortsighted, that you really don't understand.
If you actually talk to some of them
and you can see the type of insights that they have
and the way that they think you'll know
they actually have very very smart people
very hard working people very generous people.
- Actually I want to add to that
I do have a lot of second generation friends
- Yes
- from China and most of them even though right now
they're in college studying but they are
also seeking a way out.
Not all of them want to inherited their like family
- Yeah, sometimes they want to
- Want to do something for themselves
and maybe also it's possible like a bunch of
like rich kid friends are getting together
and starting a company together
and they just want to prove themselves as well.
They want to build legacy for themselves
it's because they already have the foundation
of the money and the connections even the skill necessary
so it's very easy for them to do anything
compared to the normal Chinese.
- Yes, and you will see that although they have enough money
they don't have to work but they might want
to start their own business, they might want
to their their own thing, not even want to take over
it's up to them but there are many many possibilities.
So that's really the overview of where does
the money come from.
Who are they, what are they like
but comment below if you have ever had conversation
and you've meet some of fluent Chinese or immigrants
maybe there's first generation, second wave or third wave
whatever or second generation,
what's been your experience?
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