$1m fight to stay in NZ

A Chinese man who borrowed $1 million to settle in New Zealand is fighting his residency rejection.

Chen Xiang Yang, of Auckland, borrowed the money through a company associated with former Prime Minister Jenny Shipley.

He was granted approval in principle for New Zealand residency last December on the basis that he would invest $1 million in Government stock for at least two years.

But the High Court at Wellington heard this week that Mr Chen borrowed the money from a Hong Kong bank through Canadian firm Pacrim.

Lawyers said Mrs Shipley was retained by Pacrim's New Zealand operation, PIC.

The Immigration Service has revoked Mr Chen's residency approval from December 3, claiming that PIC, not Mr Chen, controls the $1 million investment.

It is understood that Mr Chen is one of several business migrants whose provisional residency approvals were rejected after borrowing money through PIC.

The judge reserved his decision.

- NZPA