Chinese investment in Australia dropped to USD 10.3 billion (AUD 13.3 billion) in 2017 – down 11% (in USD terms) from 2016 - despite renewed investment in mining, continued investment in commercial real estate and a surge in healthcare investment. Changing regulatory, political and economic landscapes impacted on new investment flows from China to the world during the year, with global Chinese overseas direct investment falling by 29%.
The volume of Australian deals (102) was on par with the previous year, but average deal sizes fell, with 76% below AUD 100 million. While investment by private Chinese companies grew, the total volume of State Owned Enterprise (SOE) investment dropped for the first time since 2014. NSW continued to attract the most investment (42%), followed by Victoria (36%) and WA (14 %).
These are among the key findings of the latest Demystifying Chinese Investment in Australia (June 2018) report by KPMG and The University of Sydney Business School, analysing Chinese outbound direct investment into Australia in calendar year 2017. JLL contributed data and analysis on commercial real estate development transactions. The report also incorporates the bi-annual Chinese Investors in Australia Survey – providing insights into the perceptions of the Australian investment climate by Chinese investors.
Business School research and analysis was undertaken by the report’s co-authors, Professor Hans Hendrischke, and Lecturer in International Business, Dr Wei Li.
We are proud to share with you the full report series, Demystifying Chinese Investment in Australia.