Sun, Apr 11, 2021
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. SPACs: Investors sour on SPACs, Hong Kong is set to target first SPAC listing by end of year, How the American SPACs rocket has failed to take off in Europe, UK car seller Cazoo agrees to go public on NYSE through Och-backed SPAC, The SPAC boom is losing steam[more]

    Investors sour on SPACs From Institutional Investor: Is the blank-check bubble bursting?Shares of many special purpose acquisition companies are down 20 percent or more from the highs they hit in February. Many of them are blank-check companies that have announced merger partners but h

  2. PE/VC: Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open, Investors flock to European e-commerce start-ups hoping to take on Amazon, Private equity champion mocks Oxford academic over criticism[more]

    Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open From Institutional Investor: A battle by Sixth Street Partners to stop a landmark $12 billion deal to combine Owl Rock Capital Partners with Dyal Capital Partners continued with a vengeance this week, providing more

  3. New Launches: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  4. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  5. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo