Demystifying Chinese Investment: China outbound direct investment in Australia

Demystifying Chinese Investment in Australia: Aug 2012

Despite an intensity of interest in Chinese corporate investment in Australia and elsewhere around the world, the nature and distribution of this investment in Australia is not well understood. KPMG and The University of Sydney China Studies Centre have, in the past 21 months, undertaken a thorough review of Chinese direct investment in Australia.

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Partner in Charge, Asia & International Markets and Deal Advisory Partner

KPMG Australia

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Our assessment method and data set provide arguably the most detailed and up-to-date information on Chinese corporate investment in Australia.

Key insights

  • From September 2006 to June 2012, a total of 116 completed deals were recorded. During this period, an accumulated USD 45.1 billion was invested by Chinese enterprises in Australian businesses.
  • West Australian (WA) registered firms attracted the highest level of Chinese investment, by transaction value, from September 2006 to June 2012.
  • Investment diversity has been greatest in NSW. While more than 70 percent of China’s investment volume (USD 7.6 billion) was directed into mining and oil and gas, investment also occurred in real estate, agriculture, architecture and other sectors.
  • The average size of completed deals is larger in Australia, compared with other countries. Nineteen of 116 completed deals have a transaction value of more than USD 500 million. These ‘mega-sized’ deals account for more than 80 percent of total Chinese investment in Australia.

Demystifying Chinese investment in Australia

Demystifying Chinese investment in Australia

Research on Chinese investment in Australia written collaboratively with the University of Sydney China Studies Centre.

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