Invest
Where the investor opportunities are in One Belt, One Road
The ambitious project designed to tie together the two ends of Eurasia, Oceania and Africa could be a boon for long-term investment, an investment manager has said.
Where the investor opportunities are in One Belt, One Road
The ambitious project designed to tie together the two ends of Eurasia, Oceania and Africa could be a boon for long-term investment, an investment manager has said.
According to global listed infrastructure investment manager RARE Infrastructure, an investment bank-led uptick in the Chinese government’s One Belt, One Road (OBOR) infrastructure policy could be good news for investors.
Noting that development in the initiative was soft in 2015-16, thanks to Chinese currency and capital control returns, portfolio manager Charles Hamieh said financial support from the Asian Infrastructure Investment Bank (AIIB) contributed to the pick-up in development.
With this in mind, he said the size of OBOR, which includes railways, ports, roads and energy infrastructure, will see the economic benefit of related investments more significant for developing countries than China.
“Outside China, and in the near term, major beneficiaries of OBOR may be seaports along the Maritime Silk Road, such as in south-east Asia (such as Myanmar), south Asia and east Africa,” he said
“While OBOR has a limited impact on global listed infrastructure in the medium term, we believe that there are several long-term investment opportunities within the broader emerging market space.”
Mr Hamieh said the key goal of OBOR is to diversify China’s current export markets, and a significant near-term benefit is boosted awareness to absorb overcapacity in the commodity sector.
“In addition, the engineering and construction sector, such as producers of rail equipment and machinery, could also gain meaningfully with new overseas orders,” said Mr Hamieh.
“Listed infrastructure company China Merchants Port Holdings (CMP), a current holding in all three of RARE’s actively managed strategies, is strategically positioned to benefit from China’s push for the OBOR initiative and Free Trade Zones (FTZ) policy.
“CMP is China’s largest port operator across China’s five major port regions and has exposure to eight of China’s 10 largest ports including Shanghai and Shenzhen, which are amongst the global top three.”
He said infrastructure assets will be “one of the greatest beneficiaries of all the long-term driving markets”, as they provide direct access to domestic demand in these emerging markets.
Concluding, Mr Hamieh argued that these assets also create more defensive underlying revenues as a result of their contracted nature with explicit inflation linkage.
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
