Invest
Chinese investment a wake-up call for Aussies
Recent Chinese efforts to acquire Australian agribusiness have renewed anxious conversations about foreign ownership, but are Australians missing an investment opportunity?
Chinese investment a wake-up call for Aussies
Recent Chinese efforts to acquire Australian agribusiness have renewed anxious conversations about foreign ownership, but are Australians missing an investment opportunity?
While Australia continues to benefit from Chinese investment, there is always an uneasiness that surrounds any announcement of foreign ownership, especially when it comes to Australian agribusiness.
It was the joint acquisition bid between Gina Rhinehart and Chinese consortium Shanghai CRED for the iconic Kidman & Co cattle properties that sparked the most recent spate of concerns, but is foreign investment being misconstrued?
ShineWing Australia, the domestic wing of Chinese accounting giant ShineWing International, says Australians are failing to see the opportunities this interest presents.
“We need to have a completely different mindset. There is substantial upside in the supply chain that we should be taking advantage of,” ShineWing Australia’s managing partner Marco Carlei told nestegg.com.au.
“We should be responsible or at least contributing to making sure that Australian milk lands on shelves in Beijing. We’re not doing that as well as we should be and that’s partly why Chinese entities are coming out and acquiring agricultural properties or whatever it might be.”
It is not the first time that Australia has missed an investment and/or business opportunity.
“It’s no different to 50 years ago when we were selling Marino wool to the Italians. We weren’t value-adding and we were buying the Zena suits for 50 times the price. We had the source product, why weren’t we making Zena suits?” Mr Carlei said.
“We’re in the same situation now, yet we’re critical of the Chinese when they’re coming over and buying up farms and infrastructure or whatever it may be, and it’s a wake-up call for us to do something about it.”
One company that has taken advantage of those opportunities is Findex which owns Crowe-Horwath, the third biggest accounting firm in China, the only market where the big four accounting firms do not have a monopoly.
Findex global head of business development Peter Gardiner told nestegg.com.au that Australian agribusiness should view Chinese investment as recognition of its quality.
“Most affluent middle-class Chinese are well-educated, they’re worldly, they look on Australia and New Zealand favourably, and I think the two countries have done an incredibly good job of promoting the cleanliness and the quality of the agricultural produce and those Chinese business people see that and are saying we want that, both as consumers and investors,” Mr Gardiner said.
“I guess where the opportunity lies for mid-market businesses and entrepreneurial businesses here in Australia is to tap into that Chinese market from an export perspective and also potentially seek out a joint venture or other access to capital that emanates from China.
“I think as long as Australia as a nation gets the balance right, I think China is a really strong supporter of GDP here.”
As Australia shifts away from the mining boom, it’s likely that China’s consumer market will serve as a much needed economic replacement.
“China’s economy is changing from an industrial bastion where we were selling them rocks and minerals, to a consumer-based one. It’s about not just facilitating inbound investment in Australia and it’s important we recognise these exciting opportunities for us. It does require a change in mindset and in industry practice,” Mr Carlei said.
“They have the largest middle class in the world so effectively they’re buying more international consumer goods. The Chinese can see that and they’re taking advantage of it. Now we need to.”
Property
4 property trends that those looking to buy in 2022 will want to know about
Experts have already got a pretty good idea of what the new year means for the property sector. ...Read more
Property
Super saver scheme changes to benefit FHBs
The federal government’s First Home Super Saver Scheme is due for an upgrade. ...Read more
Property
Australia’s property market bull run may be on its last legs
Experts say that the runaway growth of Australia’s housing market is coming to an end. ...Read more
Property
Property prices are still rising, but growth continues to slow
November marked the 14th consecutive month of rising house prices in Australia. ...Read more
Property
First home buyers need almost 11 years to save for a deposit
Saving for a deposit is taking longer than ever, according to a new report on housing affordability. ...Read more
Property
Will 2023 put an end to the housing boom?
Is the end in sight for Australia’s most recent property boom? ...Read more
Property
Australia’s top 20 suburbs for property investment revealed
NSW has the most investment opportunities, according to ME Bank, but a Brisbane suburb has taken out the top spot. ...Read more
Property
CBA forecasts 10% house price drop for 2023
The Commonwealth Bank is the most negative of the majors on property prices. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Property
4 property trends that those looking to buy in 2022 will want to know about
Experts have already got a pretty good idea of what the new year means for the property sector. ...Read more
Property
Super saver scheme changes to benefit FHBs
The federal government’s First Home Super Saver Scheme is due for an upgrade. ...Read more
Property
Australia’s property market bull run may be on its last legs
Experts say that the runaway growth of Australia’s housing market is coming to an end. ...Read more
Property
Property prices are still rising, but growth continues to slow
November marked the 14th consecutive month of rising house prices in Australia. ...Read more
Property
First home buyers need almost 11 years to save for a deposit
Saving for a deposit is taking longer than ever, according to a new report on housing affordability. ...Read more
Property
Will 2023 put an end to the housing boom?
Is the end in sight for Australia’s most recent property boom? ...Read more
Property
Australia’s top 20 suburbs for property investment revealed
NSW has the most investment opportunities, according to ME Bank, but a Brisbane suburb has taken out the top spot. ...Read more
Property
CBA forecasts 10% house price drop for 2023
The Commonwealth Bank is the most negative of the majors on property prices. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
