Sat, Nov 16, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Chinese investors lose 30% (A$12bn) from weak Australian dollar

Tuesday, September 08, 2015

Komfie Manalo, Opalesque Asia:

The weak Australian dollar caused Chinese investors to lose some A$12 billion or 30% of the value of their A$40.3 billion investment in that country over the past two years, said David Chin, Managing Director of Basis Point.

Chin said that the investments were made in the 2012 and 2013 financial years mostly in resources. Since that 2012/2013 period, the RMB to AUD rate has dropped from an average of 6.5 in the two-year period to June 2013 to 4.5 currently, a drop of 30%.

He calculated the A$40.3 billion from FIRB (Foreign Investment Review Board) statistics as well as Basis Point’s research on property investments by Chinese permanent residents and temporary visa holders, as well as investments in shares listed on the Australian Stock Exchange (ASX).

However, Chinese investors who purchased approximately A$5.9 billion in off-the-plan apartments in the year to June 2013 are looking at combined currency and property price gains of 40%+ since these apartments are only now being completed where full settlement is required.

From a resources investment point of view, the situation is worse for Chinese investors. Based on FIRB approvals, $18.8 billion was invested in the resource sector in the 2012 and 2013 financial years. During that two-year period, the All Resources index averaged 4356. Today, the index is 2816, equating to a loss of 35% if the index is used as a gauge of ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Private equity is the new stock, Private equity fundraising in the US hits all-time high, Foreign private equity firms lead $152bn blitz on London Stock Exchange[more]

    Private equity is the new stock From Institutional Investor: The traditional portfolio of stocks and bonds needs an alternative investment shake-up after failed monetary policy, according to executives at JPMorgan Chase & Co.'s asset management unit. "We are in an odd cyclical posit

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption