Date: Monday, 26th October 2015
Source: The Business Times, 22 Oct 2015
China is considering launching its long-planned qualified domestic individual investor programme (QDII2) in the Shanghai FTZ, according to the State Council. Currently individual Chinese investors are allowed to purchase a maximum of US$50,000 worth of foreign currency a year, but regulators have been considering an expanded programme for selected domestic investors for some time. The planned QDII2 programme would be restricted to individuals with at least 1 million yuan in financial assets.
Source: Reuters, 23 Oct 2015
China’s central bank on Friday cut interest rates and lowered the amount of cash banks must hold as reserves, besides freeing up deposit rates, after reporting this week its slowest quarterly economic growth since the global financial crisis. A Q&A document released by PBOC said the rate cut was in line with the economic situation and would further lower social financing costs to support the real economy.
Source: Bloomberg, 26 Oct 2015
China’s stocks rose, sending the benchmark index to a two-month high, after the central bank cut interest rates for a sixth time in a year as the nation’s leaders gather this week to map out a five-year plan for the world’s second-largest economy. The Shanghai Composite Index increased 0.7 percent to 3,437.52 at 9:32 a.m. local time, heading for the highest level since Aug. 21. The Shanghai gauge has rebounded 17 percent from this year’s low on Aug.
Source: Brisbane times, 26 Oct 2015
Further monetary easing by China has buoyed equity markets around the world, but traders are less certain about repercussions for the Australian dollar. According to an ANZ strategist, a sharp rally after the PBoC cut rates was very short-lived and the Australian dollar pushed back towards its week lows alongside commodity prices. At midday on Monday, the AUD was buying US72.32¢, in line with where it was at the same time on Friday.
Source: ANZ, 21 Oct 2015
It’s those dreams of the Chinese middle class shifting China’s economy from an export-focused one to being consumption driven and reshaping China’s view of Australia as a source of commodities to a richer and more sustainable relationship. Three anchors of the relationship are education, investment and tourism. Analysts believe with the correct focus, Australian businesses can position themselves to greatly benefit from this change. With the Chinese middle class expected to reach over 800m by 2030, the opportunity for Australia is boundless but the global competition for their attention will be intense.
Source: ANZ, 22 Oct 2015
For companies of all sizes, for those that can expand into the region, meet the right people and build the right relationships – along with the right products and business strategies – the Asian opportunity is unparalleled. Australia’s financial services credentials are well established, trusted and respected. Now we are seeing consumers demand higher quality products and niche services – dairy, meat, wine, health and beauty services, technology, medical expertise and education.
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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