Thu, Nov 23, 2017
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. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W

  2. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  3. Investing - Six more Warren Buffett buys, including Southwest Airlines, Seth Klarman's Baupost Group bets on beaten-up health care, Roark Capital offers to buy Buffalo Wild Wings: Wall Street Journal[more]

    Six more Warren Buffett buys, including Southwest Airlines From Forbes.com: Our latest recommendation for aggressive investors is Restaurant Brands International . Hedge fund manager Bill Ackman has an incredible 40.1% of his fund at Pershing Square Capital Management invested in Restaur

  4. Investing - Tages Capital steps in to rescue Italy's Banca Carige, Hedge funds place $5.4bn bet on Toshiba's resurrection, Why outside investors are fleeing: John Paulson's 6 worst investments[more]

    Tages Capital steps in to rescue Italy's Banca Carige From TheTimes.co.uk: A little known London hedge fund has played a pivotal role in the first rescue of an Italian bank without state intervention since the country's bad debt crisis started three years ago. Banca Carige, a Genovese le

  5. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s