Date: Monday, 19th October 2015
Source: MOC, 15 Oct 2015
International M&A projects saw a significant increase, with a total amount of 20.18 billion USD, accounting for 23.1% of FDI, with non-SOE representing 67% of the total FDI pool. In addition, the nature of projects was found to have shifted from labour-intensive towards those with more of a value-added focus. The main reason for the changes were that business environment and policy support were both improving, additionally supplements by recent FTA and investment agreement signings.
Source: Reuters, 15 Oct 2015
China’s economic planner said it approved 218 fixed-asset projects worth 1.81 trillion yuan in the first nine months of the year, as Beijing looks to drive infrastructure investment to support slowing economic growth. The highest number of approvals were in the transportation and infrastructure sector, which saw 84 projects worth 990.6 billion yuan. It also gave the greenlight to 398.2 billion yuan worth of irrigation and water conservancy projects, as well as to 236.6 billion yuan of energy projects.
Source: Financial News, 14 Oct 2015
Mirroring a US trend, senior bankers in Asia are jumping ship to join Chinese technology companies. Credit Suisse’s head, JP Morgan Chase’s head and Merrill Lynch’s head have all left for Chinese tech companies. At Chinese technology companies, billions of dollars in venture capital have led to soaring valuations and cash-rich balance sheets. Many of these companies are now looking to put excess capital to work by making acquisitions, which creates roles for people with banking experience.
Source: Reuters, 18 Oct 2015
Increased infrastructure investment is key to stabilizing China’s economic growth, a top state advisor Yu Bin said on Sunday, while calling on the central bank to lower the cost of financing for companies and increase overall credit. Yu also said China should implement fiscal, taxation and financial policies to encourage companies to merge and restructure, and allow bankruptcies to solve the problem of overcapacity.
Other Financial Services Working Group Members’ market updates:
Australian Markets Weekly by National Australia Bank
Australian Economic Perspective by Commonwealth Bank
Australian Economic Reports by Westpac Banking Corporation
ANZ Bluenotes by ANZ Bank
Market Insights by Macquarie Group
This brief summarises a range of publicly available news articles in both Chinese and English and AustCham takes no responsibility for the accuracy of the information in these articles. In addition, the views and opinions reflected in these articles are not necessarily representative of AustCham.
AustCham Beijing’s Financial Services Working Group is chaired by Zhongmin Zha (Westpac Banking Corporation). For more details on how to get involved in the AustCham Beijing Financial Services Working Group, please contact Andrew Britz.
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