The China – Australia Free Trade Agreement is predicted to boost trade by $20 billion over the next 20 years.
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The new guidance provides useful clarification on analyst and investor briefings, analyst forecasts, consensus estimates and earnings surprises.
China growth: Great ‘wall of cash’ is heading Australia’s way
“Australians have welcomed China’s decade-long binge on their iron ore, coal and increasingly liquid natural gas, which has boosted the Australian dollar and enriched government and corporate coffers alike. But the inevitable outward expansion of Chinese business and people alarms them.
A Lowy Institute survey in 2013 showed more than 55 per cent of Australians thought we were accepting too much investment from China, a nerve pinched again in June when the Abbott government signed a landmark free-trade deal with China, 10 years in the making.
Even without it, Chinese investment was set to soar. The Foreign Investment Review Board approved $27.7 billion ($12bn in real estate) of proposals in the 2014 financial year, more than from any other country, with a developing country edging out the US, with $17.5bn approved, for the first time. Property is the new favourite investment class….” Full article.
“There are big limits on China’s ability to grow what it needs domestically, so it’s looking more and more outside its borders for stable nations to expand agriculture,” said Mark Howden, a chief research scientist at the Commonwealth Scientific and Industrial Research Organisation. “Australia fits that bill even though some areas, such as in the north, create some pretty serious challenges.”
“On 11 August, forward steam coal from Richards Bay, South Africa, on a free-on-board basis, was quoted at $54.60 a tonne, down 28% from a year ago, Bloombergdata show. However, in Australia, there could be further attempts at putting the coal projects back on track as the jobs that these mines will create in construction and operations could justify a renewed attempt to get it through, Bristow said. So, it maybe it is too early to write off the mega projects just yet.” Full article