Financial Services Talking Points | 26/10/2016


In today’s talking points:  Genworth Financial bought by China Oceanwide for USD2.7 billion; Bega shares plunge to 3-month low after partnership with Blackmores to enter China; China’s soaring property prices continue; 9 Australian companies in latest global Fintech 100 


Genworth Financial bought by China Oceanwide for USD2.7 billion

China Oceanwide has reached an agreement to buy all the shares in Genworth Financial, and would pick up 52% shareholding in the Genworth Mortgage Insurance Australia (GMIA). The Chinese billionaire Lu Zhiqiang is intending to keep Genworth’s portfolio of business. The portfolio includes the Australian mortgage insurance arm, which was floated on the ASX early last year. According to Genworth’s chairman, James Riepe, this deal is ‘the result of an active and extensive review process conducted over two years under supervision of the board and guidance from financial and legal advisors’. GMIA shares were up 1.4% to USD2.97 in early trade after the transaction was finalised.

Read more at Sydney Morning Herald 

Bega shares plunge to 3-month low after partnership with Blackmores to enter China

Shares in Bega Cheese have slumped to a three-month low after the Australian dairy producer announced that its partnership with fellow Australian company Blackmores had misjudged sales forecasts. The joint venture set up at the beginning of this year to sell infant formula and dairy powders in China, called Bemore had not gone as well as initially expected. Both Bega and Blackmores shares were lower, with Bega’s 14.3% lower at $5.56 and Blackmores nine cents lower at $112.63. Regulatory change in China amongst other factors had resulted in large price discounting as well as potential oversupplies of the products.

Read more at Yahoo

China’s soaring property prices continue

China’s property price soar makes Australia’s supposedly bubble-like market look insignificant. Prices in first tier cities such as Shenzhen have tripled within the last five years whilst property prices in cities like Shanghai have increased almost 100 percent within the same period. China’s policy makers previously encouraged this boom, however have since become more concerned and tightened purchasing and lending rules across some of the bigger cities across the nation.

Read more at ABC

9 Australian companies in latest global Fintech 100 

Global 2016 Fintech 100 now includes nine australian companies – including Prospa (31), Tyro (43) and SocetyOne (50). One the other hand, Chinese fintech companies also continue to rise, with Qudian, Lufax and Zhong An being top five. H2 Ventures co-founder Toby Heaps say the Fintech 100 ‘demonstrates the acceleration of the disruption taking place in the global financial services industry’. The world is also witnessing the emergence of new and exciting fintech players, from India to Israel, from Portugal to the Philippines.

Read more at Business Insider