No end to Chinese appetite for Sydney real estate
Global investment in properties are not expected to wane in 2016, with Sydney and Melbourne retaining their positions as the investment destinations of choice in Asia Pacific, a survey by the Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) has shown. Despite jitters in the Chinese sharemarkets, Australian experts expect continued interest in Australian property particularly from Chinese investors. “Our 2020 forecast for all Chinese international real estate investment, not just residential, is for $220 billion, which would be up more than four-fold from $52 billion in 2014,” Juwai.com co-founder Simon Henry said. Click here for full article.
Australian unemployment rate steady at 5.8 per cent
The jobs market held up better than expected at the end of last year, with the Australian economy losing only 1000 jobs month-on-month in December, while unemployment stayed steady at 5.8 per cent. Paul Dales, chief economist with Capital Economics, said “the recent improvement in Australia’s labour market was maintained in December, which should go some way to relieving the current downward pressure on equity prices and the Australian dollar. Click here for full article.
Optiver CEO Luke McElnea exits as Hong Kong relocation rumoured
Dutch financial markets trader Optiver has parted ways with its Asia-Pacific chief executive Luke McElnea amid speculation it is set to move its regional headquarters from Sydney to Hong Kong. Mr McElnea left by mutual agreement after “differing opinion about the direction of the Asia Pacific region” according to an email sent to shocked staff in Sydney. The management changes come despite the Asia-Pacific region delivering its most profitable year for Optiver, according to sources. Click here for full article.
Capital flight is at the core of China’s dilemma
China has been giving plenty of assurances this week of the inherent resilience of the renminbi. Betting that it will slide is “ridiculous and impossible”, officials assert, however this rhetoric is unlikely to satisfy investors. Confusion over China’s intentions for the yuan, and its ability to control it, was a big factor in the financial turbulence that rocked global markets at the start of the year. After the central bank overhauled its policy in August, giving market forces a greater role in determining exchange rates. However this has led to the government having being forced to prop up the currency in the face of capital flight.