Mon, Apr 23, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its