Week 1 News V1
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Australian School of Business FINS5522/FINS2622
Week 1 News
www.asb.unsw.edu.au Last updated: 26/10/14
CRICOS Code: 00098G
China overtakes Singapore for Australian banks Source: AFR 27/007/2014 China has become the biggest lending market in Asia for Australia’s banks, overtaking the financial hub Singapore as the world’s financiers target the powerhouse economy. Latest figures from the Bank for International Settlements show Australian lenders’ exposure to borrowers in mainland China rose to $US32.3 billion in the March quarter, putting it ahead of Singapore for the first time. The change comes amid a global surge in foreign bank lending to China, with cross-border bank claims on the economy hitting $US1 trillion, the BIS said. It means mainland China is now the fourth-biggest foreign market for Australian bank loans after New Zealand, the UK and the US.
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Push to enhance yuan’s status In April, Chinese state-owned steel maker Baosteel bought 175,602 tonnes of iron ore from Rio Tinto, worth about $US21 million ($22 million). But this deal was far from normal. It was Australia’s first iron ore sale in Chinese currency. Rather than paying Rio Tinto US dollars – the dominant currency for commodities sales – Baosteel handed over 114 million in yuan ($19.67 million). Announced by Prime Minister Tony Abbott during a speech to business leaders in Beijing, the deal was highly symbolic; Rio said it underscored its “deep and enduring relationship with China”. Rich Chinese property investors look abroad 26/07/2014
Rattled by falling home prices, some of the wealthiest Chinese are paring their property investments and turning to private equity or overseas holiday homes, a sign of fading hopes that the once red-hot market can bounce back any time soon.
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Private sector holds key to Vietnam’s future economic success Jim Yong Kim (*) Thursday, Jul 17,2014,09:49 (GMT+7) Kim is President of the World Bank during an official visit to Vietnam in mid-July 2014.
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SEEK’s Andrew Bassat takes aim at ‘gutless’ CEOs 21/07/2014 Chief executives and executive boards are not doing enough to capture the growth opportunities at their doorstep, according to Andrew Bassat, co-founder and CEO of online jobs marketplace SEEK. Fear of the repercussions of failure among Australia’s corporate leaders could be the biggest barrier stopping companies and investors from capitalising on the growth associated with the rise of Asia’s middle class, Mr Bassat said.
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Week 1 News
www.asb.unsw.edu.au Last updated: 26/10/14
CRICOS Code: 00098G
China overtakes Singapore for Australian banks Source: AFR 27/007/2014 China has become the biggest lending market in Asia for Australia’s banks, overtaking the financial hub Singapore as the world’s financiers target the powerhouse economy. Latest figures from the Bank for International Settlements show Australian lenders’ exposure to borrowers in mainland China rose to $US32.3 billion in the March quarter, putting it ahead of Singapore for the first time. The change comes amid a global surge in foreign bank lending to China, with cross-border bank claims on the economy hitting $US1 trillion, the BIS said. It means mainland China is now the fourth-biggest foreign market for Australian bank loans after New Zealand, the UK and the US.
2
Push to enhance yuan’s status In April, Chinese state-owned steel maker Baosteel bought 175,602 tonnes of iron ore from Rio Tinto, worth about $US21 million ($22 million). But this deal was far from normal. It was Australia’s first iron ore sale in Chinese currency. Rather than paying Rio Tinto US dollars – the dominant currency for commodities sales – Baosteel handed over 114 million in yuan ($19.67 million). Announced by Prime Minister Tony Abbott during a speech to business leaders in Beijing, the deal was highly symbolic; Rio said it underscored its “deep and enduring relationship with China”. Rich Chinese property investors look abroad 26/07/2014
Rattled by falling home prices, some of the wealthiest Chinese are paring their property investments and turning to private equity or overseas holiday homes, a sign of fading hopes that the once red-hot market can bounce back any time soon.
3
Private sector holds key to Vietnam’s future economic success Jim Yong Kim (*) Thursday, Jul 17,2014,09:49 (GMT+7) Kim is President of the World Bank during an official visit to Vietnam in mid-July 2014.
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SEEK’s Andrew Bassat takes aim at ‘gutless’ CEOs 21/07/2014 Chief executives and executive boards are not doing enough to capture the growth opportunities at their doorstep, according to Andrew Bassat, co-founder and CEO of online jobs marketplace SEEK. Fear of the repercussions of failure among Australia’s corporate leaders could be the biggest barrier stopping companies and investors from capitalising on the growth associated with the rise of Asia’s middle class, Mr Bassat said.
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