In today’s talking points Darwin and Guangzhou sign agreement to forge stronger relations, Australia’s Financial Regulators are Concerned Over the Recent Credit Reduction, Green finance grows and flourishes.
Darwin and Guangzhou sign agreement to forge stronger relations
Darwin’s City Council has signed an agreement to build stronger relationships with Guangzhou, the capital of south China’s Guangdong province.
This agreement is the latest in numerous attempts by the city of Darwin and NT to open itself up to Chinese tourism and investment. The Port of Darwin is of critical strategic importance in the Belt and Road Initiative and Kon Vatskalis, Lord Mayor of Darwin, welcomed the initiative due to its long-term value to various sectors of the norther nregion.
Vatskalis asserted that the agreement with Guangzhou’s Yuexiu District was the consequence of enduring discussions with municipal and provincial government officials, where both delegations provided detailed presentations about investment, tourism and education opportunities in Darwin.
Sources: Xinhua News
Australia’s Financial Regulators are Concerned Over the Recent Credit Reduction
Both the Federal Government and Reserve Bank of Australia are becoming increasingly apprehensive about potential credit flow cuts and their potential risk to impinging upon economic growth. This has been further proliferated by several factors, namely including the recent scrutiny of the Royal Commission regarding responsible lending laws, the banks new processes for borrower living expenses verification, and the diminished value of property markets in Sydney & Melbourne. The holistic consequence of the abovementioned has been an overall reluctance of Banks to provide credit to Australian consumers.
Although little evidence exists to illustrate the correlation between lower economic growth and the cooling of housing prices, an inherent apprehension remains concerning the unwillingness of banks to engage in financial lending. The flow on affects associated with a rise in interest rates are also a concern as this may mitigate consumer spending, thus causing a decline in economic growth.
Other contributing factors in the recent credit crunch include the exit of many Chinese buyers from the market, tighter lending regulations and a weaker demand for home loans. Whether the Australian economy can maintain its growth with such minimal lending from financial institutions remains to be seen.
Source: Australian Financial Review
Green finance grows and flourishes
Many believe that a unique solution to the environmental problem faced by the global community is green finance. In late November, a total of 28 leading global commercial banks pledged that they would prioritize financing for a diverse plethora of environmental projects.
At present, China has led the development of green finance, its reasoning for this being three-fold: Firstly, China has incredible political support for the growth of this sector both domestically and abroad. Secondly, China’s outstanding financial industries provide ample space for developing green financial solutions. Thirdly, and perhaps most importantly, China has the responsibility to play a leading role in international climate change issues.
President Xi Jinping stated at the 2017 One Belt and One Road (OBOR) Cooperation Forum that China will provide relevant economies with support for climate change adaptation. This vision has been praised and supported by international partners. The United Nations and China signed an agreement to promote the sustainable development of the OBOR. London joined the People’s Bank of China and launched a series of guidelines to encourage banks to fund green BRI projects.
Source: China Daily