Financial Services Talking Points | 09-09-2016

FinancialsTPB

In todays talking points: Tencent’s Wechat Wallet enters the Australian Market; Alipay is on its way; Aust businesses need to adapt their products to Chinese tastes; Ten Chinese developers’ $2 billion investment plan into Australia’s residential projects; China’s ecommerce tycoon credits Flinders University MBA for billionaire success


 

Tencent’s Wechat Wallet enters the Australian Market; Alipay is on its way 

Novatti Group, a mobile payments company listed on the ASX, announced the agreement with RoyalPay Australia, a Chinese start-up undertaking a three-month residency at Sydney’s fintech hub, Stone & Chalk. RoyalPay will be able to operate under the Australian Financial Services Licence that had previously been granted to Novatti’s subsidiary Flexewallet. Peter Cook, chief executive of Novatti group, said: The spending power of the booming Chinese tourist segment in Australia is huge, and we have helped enable a major new payment method for them. Australia is expected to receive more than 1m visitors from mainland China in 2016, which will spend an estimated A$2.5bn on retail goods. There are high expectations Alibaba, which will open its first Australian office in Melbourne later this year, is gearing up to roll out Alipay, its mobile payments business, in Australia for residents and visitors.

Source: Financial Times

Aust businesses need to adapt their products to Chinese tastes 

China has become Australia’s largest and most important trade partner because of its exceptional demand for commodities and resources over the past 15 years. However, in future it will demand a wider variety of goods and services from Australia than it has for the past decade. Due to the shift of China’s economy from being investment-heavy and commodity-based, to being driven by domestic consumption and services, raising questions about how Australia can adapt after the commodities boom. Monash University’s director of engagement, Professor Edward Buckingham, said even a moderate increase in Chinese consumption growth could see up to 25 per cent of Australia’s services exports going to the Chinese market. However, former Victorian premier believes that under these new conditions Australian businesses “will need to invest not only in developing an understanding of customer preferences in this market, but also in the skills and capabilities of their workforce best suited to the international arena,” Professional services firm “ShineWing Australia” said Australia’s focus on selling “rocks and crops” had significantly segregated businesses from adapting their products to suit Chinese tastes.

Source: The Australian

Ten Chinese developers’ $2 billion investment plan into Australia’s residential projects 

Backed by ten China-based developers, United Investment has grand plans to invest up to $2 billion over the next few years into Australia’s residential projects. Chinese property giants like Poly and Dalian Wanda are often competing and bidding against each other for Australian contracts. What often happens in these cases is the price becomes higher as does risk, and profit is lost. Ten companies therefore came up with a plan to set up a joint venture whereby each owns 10 per cent and equal voting rights.

Source: The Australian

China’s ecommerce tycoon credits Flinders University MBA for billionaire success 

Shanghai billionaire tycoon Junling Liu credits the MBA at Flinders University as his turning point in life when he decided his future was in business rather than teaching. He’s since co-founded China’s largest online grocery retailer, Yihaodian with an annual turnonver of $3 billion a year. Liu also co-founded the biggest online drugstore, 111.com.cn in China with an annual turnover of around RMB 1 billion ($A190 million). Liu recognizes the university for liberating his mind and teaching him how to think as an entrepreneur.

Source: Financial Review