Financial Services Talking Points 27-04-2016


China’s central bank pumps more money into market
On the 25th of April, China’s central bank pushed a large sum of money into the Chinese market in order to help relieve some of the liquidity strain. 180 billion yuan was directed by The People’s Bank of China (PBOC) into ‘seven-day reverse agreements’, which allows the central banks to purchase securities from banks with the arrangement and intention of reselling them in the future. The reverse repurchase agreement followed an an insertion of 260 billion into the financial system on Thursday, and 250 billion yuan on Wednesday. Click here to read the full article.

China aims to boost robot output
According to an industry regulator, China intends to triple its annual robotics production within the manufacturing sector to 100,000 within the next five years. The expanding of the robotics industry is in line with the governments desire to upgrade from ‘labour-intensive manufacturing’ and advance in ‘technological innovation’. The increasing quality of equipment and the initiative details of the growth of the robotics industry was also highlighted throughout the 13th Five-Year Plan. The ministry of Industry and Information Technology intends to sell more than 30-billion-yuan worth of service robots by 2020, in order to help facilitate the growing demand in industries such as healthcare, education and entertainment. China is currently the world’s largest market for industrial robots, surpassing Japan in 2013. Click here for the full article.

Ant Financial, owner of Alipay, overtakes Paypal
China’s Ant Financial is now worth USD$60 billion, putting it above main rival Paypal. The new valuation comes in the wake of a significant fundraising round where investors committed USD$4 billion to the company. Originally existing as Alipay, Ant Financial has broadened it’s scope to include credit rating, small business e-loans, and investment in short term debt securities as a money market fund. Future plans for Ant Finance include a dual focus on expanding to China’s rural areas and foreign markets, and potential stock market listing. With shareholders including China Life, China Development Bank Capital, and China Investment Corp. Capital many are looking to future funding rounds for Ant Financial. Click here for the full article.

China’s interest in Australian property
Despite a recent housing slowdown, Chinese investment in Sydney and Melbourne property remains steady. Drew Dickson, of Drew Dickson Architects, noted that interest in residential development hadn’t waned. Dickson’s said Australia’s exchange rate was drawing Chinese investors in, with the nation’s reputation as a solid investment destination and its established Chinese population giving the property market resilience. Nonetheless, the Reserve Bank of Australia recently warned that China’s economic slowdown would have a runoff effect on the Australian property market. CoreLogic RP Data confirms this, observing 2016 as the lowest point for annual home growth in 31 months. September marks the upcoming China International Fair for Investment and Trade, and Dickson, along with keen investors are confident that the property market will continue to grow. Click here for the full article.