Australia-China cooperation has unlimited opportunities and broad prospects – an introduction to the investment situation of Chinese enterprises in Australia

Australia - is a country full of vitality in the world. It is a "lucky country" that has always been favored by wealth. It is the only country in the world that monopolizes the entire continent. It is also the largest and most developed country in Oceania!

Sino-Australian investment in Australia

Investment amount reaches new high

According to a joint research report by the University of Sydney and KPMG, the amount of investment by Chinese companies in Australia reached US$11.49 billion (A$15.36 billion), second only to the investment peak in 2008. Among them, investment in infrastructure and agriculture hit a record high.

China’s total direct investment in Australia over the years (USD million):

Distribution of Chinese investment industries in Australia

In 2016, investment by Chinese companies continued the previous trend. Not only did the number of transactions break through records, but they also became more diversified in terms of industry and regional distribution. Investment in the energy sector surpassed mining for the first time. Investment in commercial real estate still dominates China's direct investment in Australia, accounting for 36%. Investment in infrastructure has increased significantly to 28%, and investment in the medical industry is also considerable. The proportion of mining investment fell back to 5%, and energy investment exceeded mining for the first time to reach 8%; agricultural investment doubled. Chinese companies’ investment in Australia continues to diversify and set new records!

Industry distribution chart of Chinese enterprises’ direct investment in Australia:

Commercial real estate is still the industry in which Chinese enterprises invest the most, and more developers have shifted their focus to residential development, which not only includes high-rise building developments in the city, but also extends to medium-density residential developments and green space development projects. Chinese investors are still very interested in investing in hotels, which is in line with the development trend of the tourism industry. Chinese investors have acquired $1.7 billion in hotel assets over the past two years and investment in this sector is expected to continue to grow.

Geographic distribution of Chinese enterprises’ investment in Australia

New South Wales remains the main investment destination for Chinese companies investing in Australia (accounting for 53%), attracting more than half (53%) of the investments, and Victoria ranks second with 25%. South Australia attracted A$1.27 billion in investment in 2016, while Western Australia increased from A$114 million in 2015 to A$1.38 billion in 2016. Tasmania also received $280 million in agricultural investment.

Distribution of direct investment by Chinese enterprises in Australia in each state in 2016:

Cases of Chinese Enterprises Investment in Australia

Australia is the first developed country with Western civilization as the mainstream after the "21st Century Maritime Silk Road" extended to the South Pacific. It has a special and important position, rich resources, and strong economic and trade complementarity with China. At the same time, it has huge potential for infrastructure and regional development, and has great potential for interconnection. In recent years, with the joint efforts of China and Australia, “One Belt, One Road"Under the guidance of the initiative, complementary and win-win bilateral trade has brought huge business opportunities. Chinese investment in Australia has diversified from the energy and mineral fields. A number of major Chinese-funded projects have been implemented around the themes of interconnection and production capacity cooperation. Economic and trade cooperation has achieved fruitful results. In 2016, the investment amount of Chinese enterprises in Australia reached 11.49 billion U.S. dollars, reaching the investment peak in recent years. Among them, investment in infrastructure and agriculture hit a record high, and not only did the number of transactions break the record, The industry and regional distribution are also more diversified. In addition to traditional industries such as mining, energy and agriculture, Chinese companies have begun to get involved in more comprehensive fields such as health care, health care, financial services, biomedicine, high technology, information and communications, logistics ports, infrastructure, education and tourism!

infrastructure

China Communications Construction Company successfully acquired Australia's third-largest infrastructure engineering contractor; CIC Huitong Capital obtained the 50-year lease of the Port of Melbourne, the largest and busiest freight terminal in Australia; China Railway Rolling Stock Corporation Limited won the Victorian government's high-capacity subway car manufacturing and production project contract through bidding.

agricultural cooperation

New Hope Group acquired Victoria Cattle Farm, Moon Lake Company acquired the largest dairy farm dairy company in Tazhou and Australia; Zhejiang Rifa Company acquired three cattle and sheep breeding farms, Yangtze River Life Technology Group acquired the largest wheat grain farm in Western Australia; Yuetan Investment acquired Australia's largest dairy company.

Medical care and elderly care

Chinese private equity fund Gouda invested in ICON Group, Australia's largest cancer hospital chain focusing on integrated comprehensive cancer treatment; China Resources Group acquired an Australian cancer and heart disease treatment service provider; Luye Medical Group took over Health Care, Australia's third largest private hospital operator; Fosun Group joined forces with Australia's well-known high-end nursing care brand to sign a joint venture to jointly build a high-quality care flagship project in Qiye Xiangshan, Beijing.

health care

Biostime acquired Swisse, the largest health care brand in Australia; China Biosynthetics United and Fosun International acquired Good Health, a New Zealand dietary and health supplement manufacturer; Shanghai Pharmaceuticals announced that it would invest AU$313 million to acquire and privatize an Australian listed health products company; China Goubuli Group and the traditional Chinese medicine brand "Tianjin Tongrentang" invested in Blooms and invested AU$60 million.

financial services

China's four major state-owned banks have all opened branches in Australia. CITIC Securities has opened an Australian representative office to enter the Australian securities industry; Hony Capital acquires and invests in Australian listed companies; Australia-China wealth management capital map cooperation is strengthening day by day; more and more Chinese small and medium-sized enterprises are choosing to list in Australia, and the older they are, the more Chinese capital is entering Australian fund management, wealth management and other fields.

clean energy

State Power Investment Corporation's overseas companies have now become the second largest wind power operator in Australia; China Shenhua Group has successively acquired 75% of each stake in the Australian Hydropower Group's wind power projects, becoming the largest Chinese-funded overseas wind farm company. Hony Capital invests in Australian energy giant company.

commercial real estate

Wanda has acquired the most scarce land in Sydney to build a new landmark in Sydney Harbour. Almost all first-tier Chinese developers such as Poly, Greenland and Country Garden have entered Australia.

shipping travel

HNA acquired a stake in Virgin Australia; the Australian tourism and hotel industry is experiencing an investment boom, with Sunshine Insurance acquiring the Sydney Sheraton Hotel, and Shanghai United Real Estate acquiring the luxury InterContinental Hotel in Sydney's Double Bay District.

The development status of Shenzhen enterprises in Macao

Shenzhen is the first special economic zone established by China's reform and opening up. It has created the world-renowned "Shenzhen Speed" and has developed into an international city with a certain influence. As the external window of China's reform and opening up and the earliest innovative city in the internationalization process, Shenzhen has a long history of friendly relations with Australia. As early as 1992, Shenzhen and Brisbane became sister cities. In 2014, Shenzhen and Canberra became sister cities. According to statistics, the total import and export trade between Shenzhen and Australia in recent years has reached US$5.2 billion, and Australia’s direct investment in Shenzhen is approximately US$200 million. Australia is rich in resources, has a developed economy, and is culturally diverse. There is vast space and huge potential for cooperation with Shenzhen. The two sides have given full play to their respective comparative advantages and strengthened cooperation in the fields of economy and trade, tourism, culture, education, etc. to achieve win-win development. More and more Shenzhen companies have gone to Australia to invest and start business. Huawei, a Shenzhen business card technology company, has already laid out the Australian telecommunications industry and penetrated Australia's multi-billion dollar supply chain into the ICT industry. Tencent's WeChat payment has become popular in Australia, and environmentally friendly battery cars manufactured by BYD are used at Sydney International Airport; the parent company of Tian'an Cyber City, a well-known industrial park developer and operator in Shenzhen, has already developed Sydney's largest commercial industrial park and opened an Australia-China through train to promote innovation exchanges between Australia and China; Ping An Trust and Australian developers plan to develop the tallest building in Sydney, and China Merchants Bank will set up a branch in Australia this year to organize wealth management!

Both Australia and China are facing an important period of economic transformation, and innovation has become the main driving force for realizing this transformation; as a city of innovation and vitality, Shenzhen is currently building a modern, international and innovative city. There is huge room for cooperation between Shenzhen and Australia in the field of technological innovation in economic and trade exchanges!

Insight into economic changes and grasp investment trends

Focus on potential areas to tap growth opportunities

China is the largest developing country in the world, and Australia is a developed country with important influence. Both countries are important economies in the Asia-Pacific region and the world, and both are active advocates and practitioners of trade and investment liberalization and facilitation. China's "One Belt, One Road" initiative and Australia's "Facing Asia" policy concept will jointly and forcefully promote the process of Asia-Pacific economic integration, and play an important role in expanding common interests and moving towards a community of a shared future for members of the Asia-Pacific region. The free trade agreement reached by China and Australia will provide a solid pedal to start the process of the Asia-Pacific Free Trade Area, pragmatically promote the economic integration process in the Asia-Pacific region, promote in-depth integration and common development of various economies, and play a positive role in achieving lasting stability and prosperity.

China-Australia Free Trade AgreementIt is a major step towards deepening the friendship and the development of comprehensive strategic partnership between the two countries. Cooperation between Australia and China in agriculture and food, general health industry, biomedicine, health care, education and tourism, and other service industries, as well as scientific and technological innovation industry, will usher in more cooperation opportunities. The signing of the China-Australia Free Trade Agreement means that economic and trade cooperation between the two countries will become closer, opening up more opportunities for Australia's agriculture, service industries and many other industries to enter China, and adding impetus to Australia's economic growth. Australia and China will jointly create history and lead the two countries, the Asia-Pacific region, and even the world towards a better future!

Global Fortune Investments Limited (GFI)As a company listed on the Australian main board ASX, it is mainly engaged in mining, including gold and nickel mining, agricultural development and health food trade. It is currently planning the development of energy storage batteries. GFI is not only a comprehensive investment company, but also committed to building an international platform that serves trade cooperation between China and Australia.

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