POST Online Media Lite Edition



 

Chinese investment in Australia growing and diversifying

Staff writer |
Chinese investment in Australia has returned to positive growth , rising very strongly with a record number of deals taking Chinese investors into new industries and new geographies.

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Investment into commercial real estate has made up for the drop in investment in the mining sector.

The return of the mega deal, with seven investments of AU$500 million or more during the year, helped propel the total value of investment to US$11.1 billion (AU$15.09 billion), a 32.9 percent increase on the previous year in US$ terms (or a 59.5 percent increase in AU$).

This was the second highest inflow year for new Chinese investment into Australia, behind the previous peak driven by mining sector investment in 2008.

On an international stage, Australia maintained its position as the second largest recipient of aggregated Chinese direct investment between 2005 and 2015, behind the United States, attracting a cumulative US$78.7 billion during the period.

In Australia, commercial real estate remained dominant for the second year in a row, accounting for 45 percent of the total deal volume. There was also significant investment into renewable energy and health, and long-awaited growth in agriculture and agribusiness investment.

Chinese investors also moved into new geographies, with the Northern Territory receiving over AU$565 million of investment for the first time. NSW remains the top destination for investment, attracting 49.3 percent of the national total.

These are among the key findings of the latest Demystifying Chinese Investment in Australia report by KPMG Australia and The University of Sydney, analysing Chinese outbound direct investment into Australia in 2015.

This year’s report also includes new research analysing the sentiment and attitudes of Chinese investors towards the Australian market.


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