Financial Services Talking Points 02-11-2015


Date: Monday, 2nd November 2015

40 items in the financial reform of Shanghai FTZ (Chinese)

Source: Sina, 31st October, 2015

There are several items that AustCham members should pay attention to, including capital account reform and DFII2. Liberalizing the capital account was the highlight of a number of new pilot measures that China’s central bank announced for the Shanghai free trade zone on Friday. The People’s Bank of China said in a statement that individuals in the zone would be allowed to directly buy overseas assets, including business, stocks and real estate. Chinese citizens currently can only make overseas investments through third parties including banks and securities firms.

Beijing relaxes foreign investment rules (Chinese)

Source: Sina, 31st October, 2015

Beijing has promised to draft guidelines to manage new companies looking to merge after the central government relaxed market entry rules to allow more foreign investment in the service sector on Tuesday. According to the previous rules, foreign banks need to establish a joint venture to be licensed in the commercial banking area, with 20% stock holding at most.

CPC targets transparency to woo foreign investors (English)

Source: Xinhua News, 29th October, 2015

China will attract more foreign investors by being clearer on the rules that apply to them, according to a communiqué released on Thursday following the Fifth Plenary Session of the 18th Communist Party of China (CPC) Central Committee. At this key four-day meeting, leaders decided on nationwide adoption of the “negative list” model that clearly states sectors and businesses that are off limits to foreign investment. Members should be aware that this would help ensure protection of foreign investors’ rights and better allocate their funding. The communiqué suggested the service sector should be further opened to foreign investment and systems to promote service trade should be improved.

Meanwhile, China will keep promoting the Belt and Road Initiative by enhancing cooperation with countries and regions along the route, and participate in global industrial and equipment manufacturing cooperation, according to CPC.

Overseas media expect China’s 13th 5-year plan to bear on world economic development (English)

Source: Xinhua News, 29th October, 2015

The ongoing meeting in Beijing to decide on China’s development blueprint for the next five years is being widely watched across the world. Many overseas media expect China’s 13th Five-Year Plan under discussion at the fifth plenary session of the 18th Communist Party of China Central Committee from Monday to Thursday to have a major bearing on the trajectory of world economic development.

Chinese leaders have pledged to establish a new normal of slower, more sustainable growth after the double-digit growth in the past, said AFP in a report.

The Australian Financial Review predicted that stricter environmental protection policies, and more extended social welfare, as well as new policies on family planning would come out of this important meeting.

The meeting is expected to reduce government interference in economic activities, said The Wall Street Journal on its website. A business newspaper run by Turkey’s Hurriyet Daily News has taken note of the previously mentioned “new normal” for China’s economic growth, and the implications of China’s “Belt and Road” initiative on world economic development.

China Dairy Corporation goes for an ASX listing and wants Australian technology (English)

Source: Business Insider, 2nd November, 2015

China is now the largest single dairy importing market in the world and is now the most important market for Australia, accounting for 19% of dairy exports by both volume and value. A growing middle class is driving demand with an increasing taste for Western foods and an interest in the good things in life. Now China-based companies are starting to come to Australia, looking to improve their dairy technology and to source more milk.

China Dairy Corporation Limited announced today it is going to list on the ASX to raise capital to expand in China and is looking for technology partners in Australia. Part of the $20 million capital raising will be used for product diversification including liquid milk for children. The company has milk production in China of more than of 600 tonnes per day from its herd of more than 40,000 cows and in 2015 posted a net profit of $40 million.

“We are seeing a voracious appetite for dairy products, spurred by China’s rapidly urbanising population which already consumes more than $US5 billion of imported milk products annually,” says Enjia Liu, chairman of China Dairy.

As more Chinese realise the nutritional benefits of dairy products, the potential for Australian-sourced fresh milk, butter, cheese and other dairy products to become part of the Chinese consumer’s daily diet is immense.

“Australia’s dairy industry has an enviable reputation globally and we are keen to work with Australian dairy processors to meet that gap in China.”

Other Financial Services Working Group Members’ market updates:

Australian Markets Weekly by National Australia Bank

Australian Economic Perspective by Commonwealth Bank

Australian Economic Reports by Westpac Banking Corporation

ANZ Bluenotes by ANZ Bank

Market Insights by Macquarie Group


This brief summarises a range of publicly available news articles in both Chinese and English and AustCham takes no responsibility for the accuracy of the information in these articles. In addition, the views and opinions reflected in these articles are not necessarily representative of AustCham.

AustCham Beijing’s Financial Services Working Group is chaired by Zhongmin Zha (Westpac Banking Corporation). For more details on how to get involved in the AustCham Beijing Financial Services Working Group, please contact Andrew Britz.


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