Trade relations between China and Australia have for long been based on how the two economies complement each other. And as these economies change with the times, opportunities in financial services are becoming more and more relevant.
As one of the eight programs during the Australia Week in China, the financial services dialogue provides an opportunity for discussion between Australian delegates and Chinese regulators, government officials and executives from leading banking and financial organizations.
Financial services contributed about ten percent to Australia’s GDP last year, compared with less then seven percent in China. Canberra has issued a series of policies to promote Australia as the financial services hub for Asia. China, on the other hand, boasts financial centers like Hong Kong SAR, Shanghai and Beijing. So where can they cooperate?
"With China’s financial sector reform and opening up, there are many areas that we are complementary, and we could be partners. China’s equity market, debt market, and bank credit market are already the largest in Asia-Pacific region, but they’re mainly retained domestically within China. As that opens, it’s going to influence everybody, including Australia. So working together on the system that will maintain stability in financial sector. That’s something important for both countries," Amy Auster, executive director of Australian Center for Finance Studies, said.
In managing China’s increasing economic wealth, infrastructure finance is seen as an area where both countries can profit, but Australia also has concerns about China's regulatory reform...
"We are very much focused on the internationalization of RMB, Australia and Sydney in particular as a center for RMB exchange, we’re very committed to that. We are also very committed to China wealth management, is the big question of the pace and sequence of regulatory reform in China, and integration with international markets," David Landers, general manager of East Asian Growth Markets Australian Trade Commission, said.
The nascent China-Australia free trade agreement has granted market access to Australia's financial services providers. How can China's Asset Management companies benefit from the stronger relations between the pair?
"It seems the Chinese and Australian financial sectors need a better understanding. But we’re looking for opportunities to cooperate as well. For example, if a pension fund in Australia seeks overseas allocation in China, we can provide professional asset management. Also, we may recommend the infrastructure fund in Australia to our clients for its solid return rate," Xie Xiaoli, head of Int'l Business of Ping An Asset Management, said.
China and Australia have a solid foundation in commodity trading, and this financial services dialogue will boost cooperation between two of the world’s leading financial entities, which it's hoped will stimulate the economies of both.
