In today’s talking points: China’s top banks welcome new chiefs; China tightens up requirements for overseas investments; Jingyi group looking to Australia; Sydney on track to become Asia-Pacific’s fintech hub.
China tightens up requirements for overseas investments
The Ministry of Finance has new guidelines to tighten up scrutiny of overseas SOE investments, demanding SOEs to set up proper decision-making systems to carry out reliable financial decisions. SOEs are also required to send in on-site inspection and auditors to weight losses and risks in overseas projects. The goal is to strengthen the management of SOEs’ overseas projects, increasing investment efficiency, and to defeat the problem of low investment returns. Xu Baoli said the change will make “great significance” as the country is taking action on the Belt and Road Initiative that will involve a great deal of SOE investments with high economic risks.
Read more at: ChinaDaily
Jingyi Group, a Chinese private equity firm, is looking to make its first entry into Australia by buying electronics group TTA and its sole office building, in a deal being brokered by Melbourne TST Partners. If the deal is successful, the TTA office building, which also doubles as the company’s warehouse, would become a $3.2 million passive investment for Jingyi Group and would be the most significant asset in the transaction.
Jingyi has plans to establish a funds management division in Australia, spanning property development, equities, fixed income securities and mortgage backed securities. The company also holds a licence to introduce WeChat Wallet – an app-based payment system used extensively across China – to Australia.
Read more at: The Australian Financial Review
Sydney on track to become Asia-Pacific’s fintech hub
Sydney is on track to become Asia-Pacific’s primary fintech hub, according to a recent report released by KPMG. In fact, Sydney’s growth in the sector is now outpacing the established hubs of Hong Kong and Singapore; compared to 2014 there are now roughly an additional 500 financial services companies operating out of the city. This rapid expansion has been bolstered by strong investment, even despite a global decline in investment in the industry.
Although the outlook for Sydney’s fintech industry looks bright, more can be done to encourage innovation and promote greater growth, particularly in regards to regulatory changes. The industry should also work hard to target Australian consumer’s demands, which include the need for fast and easy access to finance and payment services for home buying and mortgages.