Chinese money meets Aussie business 4:33am 11.06.08

Treasurer Wayne Swan has announced a breakthrough in courting Chinese money with Chinese banking institutions now allowed to invest in Australia. The China Banking Regulatory Commission will name Australia as a permissible destination for investment under their Qualified Domestic Institutional Investor Scheme.

In Beijing, Swan said the move meant new opportunities for the Australian fund management industry. "We have a world class financial services industry and this is a very important breakthrough because China is now our largest trading partner. Funds can now flow from the Chinese banking system into capital markets in Australia and into funds management."
 
While the Treasurer nominated this deal as a firm step forward, he said an FTA was still a fair way off. "We are in the early stages of the negotiation of this agreement, I think they will take quite some time."