Financial Services Talking Points 07-01-2016


financial talking points


Wealthy foreigners snub significant investor visas

Interest in the federal government’s $5 million visa targeting wealthy Chinese has slumped since the introduction of new rules requiring applicants to invest in higher risk venture capital products. “SIV applicants are still grappling with perceived risks of emerging company investment,” Taronga Group managing director Avi Naidu said. In response, fund managers are urging the government to loosen the rules around residential development investments to revive interest. A spokesperson for trade minister Andrew Robb said foreign investors could still “lend” to developers independently outside the SIV program. Click here for full article.


China woes weigh heavy on Aussie dollar

The Aussie dollar has extended its steep downward slide, following shock devaluations in the Chinese yuan, which have rekindled concerns that the world’s second largest economy is slowing much quicker than anticipated. The AUD has lost about 3.5 per cent since December 31st, when it was still trading above US73c. Devaluation of the yuan by the PBoC triggered a sell-off in Asian currencies, with the Aussie dollar and New Zealand dollar swept along for the ride. Click here for full article.


UBS biggest broker

UBS has regained the mantle as the biggest broker, winning the largest slice of improved stock market trading last year, as higher volatility and heavy trading in banks and miners produced happier days for the industry. The result returned UBS to the top of the table after Citi ended the Swiss bank’s 11-year reign as market share leader in 2012. The battle among brokers took place in heavy conditions, as overall secondary trading volumes jumped 18 per cent to $2.92 trillion, the strongest calendar year since the global financial crisis. Click here for full article.


$1.53bn USD fund for infrastructure investment in northern China

The northern Chinese province of Hebei, which surrounds the Beijing and Tianjin, has initiated a 10 billion yuan fund to support infrastructure construction in the region, the provincial fiscal authorities said on Wednesday. Hebei province will commit 1 billion yuan, while the remaining amount will be sourced from banks, insurance companies, trusts and other capital contributors, likely from state-owned or private firms. Beijing, Tianjin and Hebei have sought increasing coordination in infrastructure development across their jurisdictions amid a mandate to close gaps in economic development between Beijing and its neighbours. Click here for full article.


Deflate stock market and allow China’s fortunes to swell

After a fall in the Shanghai composite, it is unlikely to see more heavy handed government intervention like that of 2015. This is not because Beijing lacks the means, but rather because officials have come to believe it is desirable for high stock market valuations to be unwound. The Shanghai stock market index is more than 40 per cent higher than it was for two years before prices began to take off in late 2014. President Xi Jinping has begun touting the virtues of supply-side reform, encouraging the elimination of tedious bureaucracy as well as a larger contribution from the private sector into investment in public works. Click here for full article.