Sunday, April 17, 2016

Weekend update: Chinese reaction to Jay Peak EB5 fraud allegations

Jay Peak resort suddenly became the hottest search term on Chinese search engine Baidu last few days.  The Chinese social media has widely distributed overnight the news about SEC and Vermont government charges on Jay Peak project developers. The case is also becoming major discussions among Chinese migration industry and EB-5 investors communities.  

Reactions from Chinese are very mixed, here are a just few collections of interesting thoughts and comments:

1) Can we really trust government operated EB-5 regional centers? Do they have any oversight?  Based on the Vermont government's statement, this abuse started in 2008.

2) SEC's action is very prompt! It is definitely trying to protect foreign investors.

3) Smaller direct EB-5 projects would be better than regional center projects, specifically better than the large real estate projects.

4) Invest in big cities, rural projects are too risky!

5) Can we trust American developers? There are some bad apples. We always hear bad news.

6) Who are the migration agents representing Jay Peak?  Do they conduct due diligence and monitor the projects?

7) EB-5 is still safer than Chinese stock market and real estate.

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