In its latest Trends in M&A: China outbound deals report, PwC – which examined global deal volumes and values for the first half of 2014 – found the value of Chinese deals in Australia grew by 42 per cent to US$2.4 billion, offering great opportunities for Australia.
PwC partner Andrew Parker said Australia is at a “critical juncture” in relation to Chinese foreign investment and it is imperative that foreign investment setting “accommodate China’s growing needs”.
“China’s ambassador to Australia’s description of this as a goldmine for Australia is probably about right,” Mr Parker said.
“China’s investment appetite is still large, it is still growing,” he said. “Chinese government officials are on the record as saying that China is looking to spend some $500 billion on foreign M&A in the next five years.”
“It’s clear Australia needs to ensure we’ve got our settings right so we can share in a level of foreign investment to potentially rival or even exceed the commodity price boom of the past decade,” Mr Parker said.
He added that China’s M&A activity is increasingly focused on the hi-tech, real estate and telecommunications sectors.
“Chinese investors’ focus is still very clearly on Australian resources but signs are emerging that this is changing,” he said. “In addition to growing Chinese investment in real estate and infrastructure, Australia’s agricultural, health and consumer sectors are likely to be increasingly in play too.”
