Demystifying Chinese Investment in Australia

Methodology

The dataset for our Demystifying reports is compiled by a joint University of Sydney and KPMG team and covers investments in Australia made by entities from the People’s Republic of China through merger and acquisitions, joint venture and greenfield projects. The dataset also tracks Chinese investment by subsidiaries or special purpose vehicles based in Hong Kong, Singapore and other locations. The data, however, does not include portfolio investments, such as the purchase of stocks and bonds, which does not result in foreign management, ownership or legal control.

Our database includes completed direct investments recognised in the year in which parties enter into legally binding contracts and if necessary, receive mandatory FIRB and Chinese Government investment approvals. In certain circumstances, final completion and financial settlement may occur in a later year.

For consistency, the geographic distribution is based on the location of the Chinese invested company and not on the physical location of the actual investment project. Completed deals which are valued below USD 5 million are not included in our analysis, as such deals consistently lack detailed, reliable information.

The University of Sydney and KPMG team obtains raw data on China’s outbound direct investment (ODI) from a wide variety of public information sources which are verified, analysed and presented in a consistent and summarised fashion.

In line with international practice, we record deals using USD as the base currency.

We believe that the KPMG/University of Sydney dataset contains the most detailed and up-to-date information on Chinese ODI in Australia.