Demystifying Chinese Investment in Australia: May 2015 update

Demystifying Chinese Investment in Australia: May 2015

In 2014 China became a global net foreign investor for the first time, with total outbound direct investment volume rising by around 11 percent to USD 120 billion. Although Australia maintained its standing as the second largest recipient country of aggregated global Chinese direct investment, behind the United States in first position, for the second consecutive year Chinese investment in Australia declined.

Doug Ferguson

NSW Chairman | Head of Asia & International Markets

KPMG Australia

Illuminated train tunnel purple

This report by KPMG and The University of Sydney’s China Studies Centre analyses Chinese outbound direct investment into Australia in 2014, and includes a specialist contribution from Knight Frank, analysing the unprecedented increase in commercial real estate investment during the year.

Key insights

  • Chinese investment in Australia fell 9.1 percent for the 2014 calendar year, from USD 9.19 billion to USD 8.35 billion.
  • Dramatic structural changes have driven strong shifts in the sector, number and types of deals being made by Chinese investors in Australia.
  • For the first time nearly half of investment was concentrated in commercial real estate transactions, with investment in infrastructure also increasing significantly.
  • For the first time, Chinese private sector investment exceeded state-owned enterprise investment, both in terms of volume and value.
  • New South Wales attracted 72 percent of total Chinese investment, with seven of the eight largest completed deals in 2014 being NSW domiciled.

KPMG Australia acknowledges the Traditional Custodians of the land on which we operate, live and gather as employees, and recognise their continuing connection to land, water and community. We pay respect to Elders past, present and emerging.

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