Financial Services Talking Points | 02/08/2018

In today’s talking points: Chinese investors bid up prices locally as they bring capital home; Australian rich-lister Christian Beck slams ‘paranoid’ banks for cracking down on borrowing; Chinese electric car start-up Xpeng raises 4 billion RMB as it gears up to take on Tesla; Robo-adviser goes for cashed-up Boomers over Millennials 

Chinese Investors Bid Up Prices Locally as They Bring Capital Home

The rate of commercial property being purchased domestically by Chinese investors reaches a record high. Real Capital Analytics – a real-estate data firm – reported that $546.9 billion worth of commercial property, including development sites and shopping and office buildings, were bought in China last year, a palpable increase since 2016, when deals amounted to $395.8 billion. Although investors were hesitant in the beginning of this year due to Beijing’s increasing concerns surrounding debt and financial risk, the government eased this pressure in order to trigger a softening economy, diminishing concerns over the trade war with the U.S as well. The Chinese real-estate market is relatively new in comparison with those of the U.S. and Europe; foreign investments in Chinese property only properly emerged in the 1980s. But the recent sharp increase in domestic investments is driving the Chinese real-estate market into one of the world’s largest, and the surge in market prices due to this increased domestic activity means a heightened sense of competition for foreign investors.

Read More: Wall Street Journal 

Australian rich-lister Christian Beck slams ‘paranoid’ banks for cracking down on borrowing

Chrsitian Beck – tech entrepreneur, founder of Australian Technology innovators and Australia’s 99th richest person – claims that he cannot obtain a loan, calling this the result of banks being “paranoid” in their endeavours to clampdown on lending. This clampdown is due to the Financial Services Royal Commission’s tightening of already “strict regulatory requirements,” as Mr. Beck has told The Australian Financial Review. Mr. Beck expressed his criticisms after attempting to borrow $4 and $6million to fund the expansion of his companies and having his request rejected by the Commonwealth Bank, his own bank.

Read More: 

Chinese electric car start-up Xpeng raises 4 billion RMB as it gears up to take on Tesla

Chinese E-car manufacturer Xiaopeng is taking on Tesla in the world’s largest and firecly competitive green energy auto market. Being in the world’s leading country in electricity production from renewable energy sources, Xpeng is just one of several Chinese E-car companies to emerge recently after the government issued special manufacturing permits to companies outside traditional auto industry players. Xpeng has not delivered a single mass-produced vehicle and yet the Guangzhou-based start-up has already raised over 10 billion yuan since its inauguration and is now valued at over 25 billion yuan, according to the company.

Read more: South China Morning Post

Robo-adviser goes for cashed-up Boomers over Millennials 

SuperEd is a digital financial planning platform which was founded in 2012 by Jeremy Duffield – former Vanguard Australia chair and technology entrepreneur Hugh Morrow – and the business seeks to offer pre and post-retirees financial advice. Having recently joined Mr. Morrow as co-head of the company, Paul Rogan pointed out that “a mass of Australians” do not trust advisers, and observed that people are “going into retirement and being left with no support.” Mr. Rogan also said: “most fintechs are targeting Millennials, particularly in the robo space which I find interesting given the people with the money are the people at the other end.” The retiring generation is becoming increasingly digitally savvy, with a 10 per cent increase since 2016 in the number of Australians aged over 65 who report using social media platforms every day (from 20 per cent to 30 per cent). Mr. Rogan also says that he made a mistake assuming people would use their desktop, because in the first week “as many as 60 per cent of people [were] going through ads… on their phones. We had to quickly get the site optimised for mobile.”

Read more: Financial Review