ANZ OPPORTUNITY CHINA · 7 ANZ O PP O INTRODUCTION Why this one stands out • The ChAFT A has the...
39
ANZ OPPORTUNITY CHINA MARCH 2015 THE CHAFTA AND IMPLICATIONS FOR AUSTRALIAN BUSINESSES
Transcript of ANZ OPPORTUNITY CHINA · 7 ANZ O PP O INTRODUCTION Why this one stands out • The ChAFT A has the...
ANZ OPPORTUNITY CHINA
MARCH 2015
THE CHAFTA AND IMPLICATIONS FOR AUSTRALIAN BUSINESSES
33A
NZ
OP
PO
RT
UN
ITY
CH
INA
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
CO
NT
EN
TS
INTR
OD
UC
TIO
N
6
SEC
TIO
N 1
– C
HA
FTA
OV
ERV
IEW
8
Wh
at h
as b
ee
n a
nn
ou
nce
d a
nd
wh
y w
ill it
mak
e a
diff
ere
nce
SEC
TIO
N 2
– A
UST
RALI
AN
OPP
ORT
UN
ITIE
S FR
OM
TH
E CH
AFT
A
16
• A
lo
ok
at
wh
ich
in
du
stri
es
will
be
ne
fit
the
mo
st
• In
du
stry
sp
otl
igh
t:
- D
air
y
- W
ine
- B
ee
f
- H
ea
lth
- In
sura
nce
- s
tatu
tory
3rd
pa
rty
lia
bili
ty m
oto
r v
eh
icle
in
sura
nce
- F
un
ds
- R
MB
Qu
alifi
ed
Fo
reig
n In
stit
uti
on
al In
vest
or
pro
gra
m
RQ
FII
SEC
TIO
N 3
– W
HAT
AU
STRA
LIA
N B
USI
NES
SES
SHO
ULD
BE
DO
ING
4
6
Ho
w t
o s
tart
pla
nn
ing
an
d k
ey
con
sid
era
tio
ns
SEC
TIO
N 4
– N
AV
IGAT
ING
TH
E BA
NKI
NG
MA
RKET
5
2
• C
urr
en
cy
• In
vest
me
nt
into
Ch
ina
• Li
qu
idit
y
• Tr
app
ed
cas
h
APP
END
ICES
7
0
GLO
SSA
RY O
F TE
RMS
72
KEY
CON
TRIB
UTO
RS
73
ABO
UT
CLI
ENT
INSI
GH
TS &
SO
LUTI
ON
S 7
3
ABO
UT
AN
Z RE
SEA
RCH
7
3
IMPO
RTA
NT
NO
TIC
E 7
4
Mo
re in
form
ati
on
an
d C
hin
a in
sig
hts
htt
p:/
/in
site
s.a
nz.
com
/ch
ina
ga
tew
ay
No
ve
mb
er
20
14
ma
rke
d a
n h
isto
ric
da
y i
n
Au
stra
lia
-Ch
ina
re
lati
on
s w
ith
th
e s
ign
ing
of
a F
ree
Tra
de
Ag
ree
me
nt
(FTA
) th
at
is e
xpe
cte
d t
o
bo
ost
tra
de
an
d e
co
no
mic
gro
wth
in b
oth
co
un
trie
s.
For
Au
stra
lia
n b
usi
ne
sse
s th
e C
hin
a A
ust
rali
a F
ree
Tra
de
Ag
ree
me
nt
(Ch
AF
TA)
cre
ate
s si
gn
ific
an
t
op
po
rtu
nit
ies.
Ma
ny
se
cto
rs o
f A
ust
rali
a’s
do
me
stic
ec
on
om
y, i
n p
art
icu
lar
na
tura
l re
sou
rce
s,
ag
ric
ult
ure
an
d s
erv
ice
s w
ill
no
w h
av
e a
cc
ess
to n
ew
so
urc
es
of
fore
ign
in
ve
stm
en
t a
nd
th
e
co
nfi
de
nc
e t
o m
ak
e l
on
ge
r te
rm i
nv
est
me
nts
du
e t
o e
nh
an
ce
d e
xpo
rt o
pp
ort
un
itie
s.
In A
NZ
Op
po
rtu
nit
y C
hin
a: t
he
Ch
AF
TA a
nd
imp
lica
tio
ns
for
Au
stra
lia
n b
usi
nes
ses,
we
ou
tlin
e
the
im
po
rta
nc
e o
f th
is a
gre
em
en
t, k
ey
are
as
of
op
po
rtu
nit
y a
nd
ho
w t
o d
o b
usi
ne
ss i
n C
hin
a.
Ch
ina
re
ma
ins
on
e o
f th
e f
ast
est
gro
win
g c
ou
ntr
ies
in t
he
wo
rld
an
d i
t w
ill
co
nti
nu
e t
o s
hif
t to
wa
rds
a
co
nsu
mp
tio
n d
riv
en
an
d i
nc
rea
sin
gly
se
rvic
e s
ec
tor
led
gro
wth
mo
de
l. T
his
wil
l p
rov
ide
ma
ny
Au
stra
lia
n
bu
sin
ess
es
wit
h t
he
ch
an
ce
to
ev
olv
e a
nd
div
ers
ify.
No
w i
s th
e t
ime
fo
r b
usi
ne
sse
s to
ma
ke
th
ese
gro
wth
op
po
rtu
nit
ies
a r
ea
lity
.
FO
RE
WO
RD
BY
AN
DR
EW
GÉ
CZ
Y
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A5
CE
O I
NT
ER
NA
TIO
NA
L &
IN
ST
ITU
TIO
NA
L B
AN
KIN
G
7A
NZ
OP
PO
RT
UN
ITY
CH
INA
INT
RO
DU
CT
ION
Why
this
one
sta
nds
out
• T
he
Ch
AF
TA h
as
the
po
ten
tia
l to
be
tra
nsf
orm
ati
on
al
ove
r ti
me
as:
-
Ch
ina
is A
ust
ralia
’s la
rge
st t
wo
-way
tra
din
g p
art
ne
r
(20
13
: AU
D1
50
bill
ion
; 23
% o
f A
ust
ralia
’s t
rad
e)
(Fig
ure
1)
-
Au
stra
lia r
ece
ive
s a
hig
h s
ha
re o
f C
hin
a’s
ou
tbo
un
d
inve
stm
en
t fl
ow
s (a
rou
nd
10
%, o
r U
SD
9-1
0 b
illio
n
for
the
pe
rio
d 2
01
1-
to 2
01
3)
-
80
0,0
00
Ch
ine
se v
isit
ors
no
w c
om
e t
o A
ust
ralia
an
nu
ally
, up
fro
m 2
80
,00
0 in
20
05
-
95
,00
0 C
hin
ese
stu
de
nts
are
en
rolle
d in
Au
stra
lia
(re
pre
sen
tin
g 2
5%
of
all
inte
rna
tio
na
l stu
de
nts
in A
ust
ralia
)
• T
he
Ch
AF
TA b
uild
s o
n t
he
tra
de
de
als
re
cen
tly
con
clu
de
d
wit
h J
ap
an
an
d K
ore
a, w
ith
th
e t
hre
e a
gre
em
en
ts c
ove
rin
g
aro
un
d t
wo
-fift
hs
of
Au
stra
lia’s
go
od
s e
xpo
rts.
• T
he
Ch
AF
TA in
clu
de
s a
bu
ilt-i
n m
ech
an
ism
to
allo
w f
or
furt
he
r tr
ad
e li
be
ralis
ati
on
be
twe
en
Ch
ina
an
d A
ust
ralia
an
d t
he
exp
an
sio
n o
f m
ark
et
acc
ess
ove
r ti
me
, in
clu
din
g
a fi
rst
rev
iew
me
cha
nis
m w
ith
in t
hre
e y
ea
rs.
• T
he
Ch
AF
TA p
rom
ote
s th
e s
ign
ifica
nt
rela
tio
nsh
ip t
ha
t
exi
sts
be
twe
en
Ch
ina
an
d A
ust
ralia
an
d it
pla
ys t
o t
he
ma
ny
stre
ng
ths
of
bo
th c
ou
ntr
ies.
Aus
tral
ian
bus
ines
ses
• C
ou
ple
d w
ith
oth
er
rece
nt
an
no
un
cem
en
ts, t
he
Ch
AF
TA
will
ma
ke it
ea
sie
r fo
r A
ust
ralia
n b
usi
ne
sse
s to
est
ab
lish
op
era
tio
ns
in C
hin
a.
• In
so
me
se
cto
rs A
ust
ralia
ha
s b
ee
n g
ran
ted
“be
st e
ver
acc
ess
,” m
ea
nin
g t
ha
t A
ust
ralia
n b
usi
ne
sse
s ca
n o
pe
rate
wh
olly
ow
ne
d s
ub
sid
iari
es
or
wit
h le
ss r
est
ric
tio
ns
rela
tive
to c
om
pa
nie
s fr
om
oth
er
cou
ntr
ies.
Th
is is
a c
riti
cal
ad
va
nta
ge
bu
t o
ne
th
at
is fi
nit
e a
nd
co
uld
ch
an
ge
at
an
y
tim
e, a
s C
hin
a is
hig
hly
like
ly t
o p
rov
ide
th
e s
am
e le
vel
of
acc
ess
to
oth
er
cou
ntr
ies.
Co
nse
qu
en
tly,
th
is p
rov
ide
s
a w
ind
ow
of
op
po
rtu
nit
y fo
r A
ust
ralia
n b
usi
ne
sse
s.
• U
nfo
rtu
na
tely
, on
ly 1
9%
of
bu
sin
ess
es
hav
e t
ake
n
ad
va
nta
ge
of
rece
nt
FTA
s b
ut
for
tho
se t
ha
t d
id,
75
% e
xpe
rie
nce
d e
xpo
rt g
row
th. (
sou
rce
: EIU
)
• To
su
cce
ssfu
lly c
ap
ita
lise
on
th
e C
hA
FTA
op
po
rtu
nit
y,
bu
sin
ess
es
sho
uld
be
aw
are
of
wh
at
the
ch
an
ge
s m
ea
n
for
the
ir in
du
stry
. Mo
re im
po
rta
ntl
y, b
usi
ne
sse
s sh
ou
ld
de
velo
p o
r e
xte
nd
re
lati
on
ship
s in
Ch
ina
, un
de
rsta
nd
Ch
ine
se b
usi
ne
ss a
nd
cu
ltu
ral c
ust
om
s a
nd
be
acr
oss
key
reg
ula
tio
ns
an
d fi
na
nci
al c
ha
rac
teri
stic
s w
he
n d
oin
g
bu
sin
ess
in o
r w
ith
Ch
ina
.
• Fr
om
a b
an
kin
g p
ers
pe
cti
ve, b
usi
ne
sse
s sh
ou
ld u
nd
ers
tan
d
the
gro
win
g im
po
rta
nce
of
RM
B a
s a
pay
me
nt
curr
en
cy,
ho
w t
o e
ffe
cti
vely
ma
na
ge
ris
k, li
qu
idit
y a
nd
th
e r
ep
atr
iati
on
of
pro
fits
(o
fte
n r
efe
rre
d t
o a
s tr
ap
pe
d c
ash
).
FIG
UR
E 1
. AU
ST
RA
LIA
’S T
RA
DE
WIT
H C
HIN
A
So
urc
e: D
FAT,
AN
Z R
esea
rch
% o
f to
tal
ex
po
rts
(RH
S)
% o
f to
tal
ex
po
rts
(RH
S)
EXPO
RTS
OF
GO
OD
S A
ND
SER
VICE
S TO
CH
INA
IM
PORT
S O
F G
OO
DS
AN
D S
ERVI
CES
FRO
M C
HIN
A
Va
lue
(L
HS
) V
alu
e (
LH
S)
87
9
2
97
0
2
07
1
2
90
9
5
00
0
5
10
0
6
12
18
24
30
36
0
20
40
60
80
10
0
12
0
AU
Dbn
%
Chi
nese
bus
ines
ses
and
cons
umer
s
• D
om
est
ic C
hin
ese
bu
sin
ess
es
will
hav
e t
he
ca
pa
city
to
do
eve
n m
ore
bu
sin
ess
wit
h A
ust
ralia
. Up
to
95
% o
f A
ust
ralia
n
go
od
s im
po
rte
d in
to C
hin
a w
ill e
ven
tua
lly b
e t
ari
ff f
ree
,
pro
vid
ing
low
er
cost
s fo
r b
usi
ne
sse
s, w
hic
h s
ho
uld
flo
w
thro
ug
h t
o c
on
sum
ers
in t
he
fo
rm o
f lo
we
r p
rice
s a
cro
ss
a r
an
ge
of
pro
du
ct
cate
go
rie
s.
• C
hin
ese
bu
sin
ess
es
sho
uld
fin
d A
ust
ralia
an
eve
n m
ore
att
rac
tive
ma
rke
t fr
om
an
inve
stm
en
t p
ers
pe
cti
ve.
No
n S
tate
Ow
ne
d E
nte
rpri
se (
SO
E)
con
tro
ls f
or
Fore
ign
Dir
ec
t In
vest
me
nt
(FD
I) in
to A
ust
ralia
hav
e b
ee
n r
ela
xed
.
Furt
he
rmo
re, w
hile
ta
riff
re
du
cti
on
s a
cro
ss v
ari
ou
s in
du
stry
sec
tors
will
ma
ke e
xpo
rtin
g b
ack
to
Ch
ina
mo
re e
con
om
ica
l
an
d g
ua
ran
tee
ing
su
pp
ly a
ke
y in
vest
me
nt
de
cisi
on
.
Aus
tral
ian
cons
umer
s
• C
hin
a is
Au
stra
lia’s
larg
est
so
urc
e f
or
ele
ctr
on
ic g
oo
ds,
text
iles
an
d f
oo
twe
ar.
Tari
ffs
on
a r
an
ge
of
clo
thin
g a
nd
foo
twe
ar
cate
go
rie
s fe
ll fr
om
10
% t
o 5
% o
n 1
Ja
nu
ary
20
15
wh
ile t
he
Ch
AF
TA w
ill r
esu
lt in
0%
ta
riff
s w
he
n t
he
ag
ree
me
nt
en
ters
into
fo
rce
. Bu
sin
ess
es
may
se
ek
to u
tilis
e
som
e t
ari
ff s
avin
gs
to o
ffse
t a
ga
inst
un
favo
ura
ble
exc
ha
ng
e
rate
mo
ves,
bu
t th
e c
om
pe
titi
ve r
eta
il m
ark
et
sho
uld
see
a m
ix o
f lo
we
r p
rice
s a
nd
be
tte
r q
ua
lity
(i.e
. hig
he
r
spe
cifi
cati
on
) o
n a
ra
ng
e o
f C
hin
ese
pro
du
ced
imp
ort
s.
Th
is is
a b
en
efi
t th
at
sho
uld
flo
w t
hro
ug
h t
o c
on
sum
ers
.
Tim
elin
e
• T
he
an
no
un
cem
en
t in
No
vem
be
r 2
01
4 o
f th
e C
hA
FTA
rep
rese
nte
d t
he
offi
cia
l en
d t
o n
eg
oti
ati
on
s. T
he
fu
ll te
xt
(~8
,50
0 p
rod
uc
t ca
teg
ori
es
an
d ~
1,5
00
pa
ge
s o
f te
xt)
will
be
re
lea
sed
in A
pri
l 20
15
on
ce it
ha
s u
nd
erg
on
e a
leg
al
scru
b. I
t w
ill t
he
n b
e t
ran
sla
ted
, ve
rifi
ed
an
d f
orm
ally
sig
ne
d
be
fore
it g
oe
s th
rou
gh
bo
th p
arl
iam
en
ts t
o b
eco
me
law
.
All
of
this
is e
xpe
cte
d t
o b
e c
on
clu
de
d b
y th
e e
nd
of
20
15
wh
en
ta
riff
ch
an
ge
s w
ill b
eg
in t
o c
om
e in
to f
orc
e.
TH
E C
HA
FTA
HA
S T
HE
PO
TE
NT
IAL
TO
BE
A G
AM
E C
HA
NG
ER
99A
NZ
OP
PO
RT
UN
ITY
CH
INA
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
SE
CT
ION
1
CH
AF
TA O
VE
RV
IEW
Hig
hlig
hts
• S
erv
ice
s: A
ust
ralia
n fi
rms
in a
ra
ng
e o
f se
rvic
es
ind
ust
rie
s
will
ga
in a
lmo
st u
nh
era
lde
d a
cce
ss t
o C
hin
a’s
ma
rke
ts.
• F
ore
ign
in
ve
stm
en
t: T
he
Ch
AF
TA s
ho
uld
en
cou
rag
e
mo
re in
vest
me
nt
fro
m C
hin
a in
to A
ust
ralia
ove
r ti
me
.
Inb
ou
nd
pri
va
te C
hin
ese
inve
stm
en
t p
rop
osa
ls
be
low
AU
D1
.08
bill
ion
will
no
lon
ge
r re
qu
ire
Fo
reig
n
Inve
stm
en
t R
ev
iew
Bo
ard
(F
IRB
) a
pp
rov
al,
exc
ep
t
in s
o-c
alle
d s
en
siti
ve s
ec
tors
like
ag
ricu
ltu
re w
he
re
the
ne
w (
low
er)
th
resh
old
s a
re A
UD
15
m f
or
lan
d
an
d A
UD
53
m f
or
ag
rib
usi
ne
ss. T
he
Go
vern
me
nt
reta
ins
the
ab
ility
to
scr
ee
n C
hin
ese
inve
stm
en
ts
at
low
er
thre
sho
lds
in m
ed
ia, t
ele
com
mu
nic
ati
on
s
an
d d
efe
nce
-re
late
d in
du
stri
es.
Sta
te-o
wn
ed
en
terp
rise
inve
stm
en
t p
rop
osa
ls w
ill s
till
req
uir
e F
IRB
ap
pro
va
l.
• L
ab
ou
r m
ob
ilit
y:
As
pa
rt o
f a
n a
pp
are
nt
wid
er
pu
sh
by
the
Au
stra
lian
Go
vern
me
nt,
th
e C
hA
FTA
will
re
du
ce
ba
rrie
rs t
o la
bo
ur
mo
bili
ty a
nd
imp
rove
te
mp
ora
ry
en
try
acc
ess
fo
r C
hin
ese
wo
rke
rs. L
imit
ed
de
tails
are
ava
ilab
le e
xce
pt
tha
t C
hin
ese
-fu
nd
ed
infr
ast
ruc
ture
pro
jec
ts in
Au
stra
lia a
bo
ve A
UD
15
0m
will
be
ab
le t
o u
se
Ch
ine
se la
bo
ur
un
de
r so
-ca
lled
Inve
stm
en
t Fa
cilit
ati
on
Arr
an
ge
me
nts
if t
he
ski
lls a
re n
ot
ava
ilab
le lo
cally
.
• T
ari
ffs:
Aro
un
d 8
5%
of
all
Au
stra
lian
exp
ort
s w
ill e
nte
r C
hin
a
tari
ff-f
ree
init
ially
, exp
an
din
g t
o 9
3%
wit
hin
fo
ur
yea
rs a
nd
95
% o
n f
ull
imp
lem
en
tati
on
. Ab
ou
t 9
5%
of
Ch
ine
se g
oo
ds
imp
ort
ed
to
Au
stra
lia w
ill b
e t
ari
ff f
ree
aft
er
fou
r ye
ars
.
• C
urr
en
cy
: Th
e A
ust
ralia
n d
olla
r h
as
de
pre
cia
ted
by
ne
arl
y
30
% a
ga
inst
th
e C
hin
ese
yu
an
in r
ece
nt
yea
rs, p
rov
idin
g
a f
urt
he
r ta
ilwin
d f
or
Au
stra
lia’s
exp
ort
ers
to
Ch
ina
,
pa
rtic
ula
rly
tho
se o
uts
ide
th
e r
eso
urc
e s
ec
tor
(Fig
ure
2).
Th
e lo
we
r cu
rre
nc
y w
ill h
elp
wit
h c
om
pe
titi
ven
ess
an
d
sup
po
rt p
rofi
tab
ility
fo
r th
ese
exp
ort
ers
. Th
e lo
we
r cu
rre
nc
y,
ho
we
ver,
will
ma
ke im
po
rts
fro
m C
hin
a m
ore
exp
en
sive
.
FIG
UR
E 2
. LO
WE
R A
US
TR
AL
IAN
DO
LL
AR
IS A
TA
ILW
IND
FO
R E
XP
OR
TE
RS
So
urc
e: B
loo
mb
erg
, AN
Z R
esea
rch
FIG
UR
E 3
. CH
INA
’S O
UT
WA
RD
FO
RE
IGN
DIR
EC
T I
NV
ES
TM
EN
T
So
urc
e: C
EIC
, KP
MG
/Un
iver
sity
of
Syd
ne
y, A
NZ
Res
earc
h
345678
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
CNY
per A
UD
Chin
ese
Yuan
per
Aus
tral
ian
Dol
lar
0
20
40
60
80
10
0
12
0
02
03
04
05
06
07
08
09
10
11
12
13
USD
bn,
ann
ual
Chin
a's
tota
l out
war
d fo
reig
n di
rect
inve
stm
ent
Chin
a's
FDI t
o A
ustr
alia
Com
par
ison
with
oth
er F
TAs
Au
stra
lia h
as
a m
ult
ilate
ral F
TA w
ith
Ne
w Z
ea
lan
d a
nd
AS
EA
N c
ou
ntr
ies.
Bila
tera
l FTA
s a
re in
fo
rce
wit
h C
hile
,
Ko
rea
, Ja
pa
n, M
ala
ysia
, Ne
w Z
ea
lan
d, S
ing
ap
ore
,
Th
aila
nd
an
d t
he
Un
ite
d S
tate
s.
Giv
en
th
e d
ifficu
ltie
s in
ge
ttin
g s
eve
ral c
ou
ntr
ies
to a
gre
e
on
mu
ltila
tera
l FTA
s, t
he
re h
as
be
en
a p
rolif
era
tio
n o
f b
ilate
ral
ag
ree
me
nts
in r
ece
nt
yea
rs w
hic
h t
en
d t
o b
e m
uch
ea
sie
r
to s
ett
le. T
he
aim
of
FTA
s is
to
re
du
ce o
r re
mo
ve t
rad
e b
arr
iers
an
d p
rov
ide
mu
tua
l be
ne
fits
to
bo
th c
ou
ntr
ies
by
pla
yin
g
to t
he
ir r
esp
ec
tive
co
mp
ara
tive
ad
va
nta
ge
s.
A k
ey
diff
ere
nti
ati
ng
fa
cto
r o
f th
e C
hA
FTA
ove
r o
the
r
Au
stra
lian
FTA
s is
th
at
it is
wit
h a
co
un
try
wh
ere
de
ma
nd
,
ou
tbo
un
d in
vest
me
nt
(Fig
ure
3)
an
d t
ou
rism
(Fi
gu
re 4
)
are
exp
ec
ted
to
co
nti
nu
e t
o g
row
qu
ickl
y. W
hile
all
FTA
s
are
bro
ad
ly s
imila
r in
th
eir
aim
s, t
he
ag
ree
me
nt
wit
h C
hin
a
po
ten
tia
lly p
rov
ide
s g
rea
ter
up
sid
e f
or
Au
stra
lia d
ue
to
th
e
stro
ng
un
de
rlyi
ng
gro
wth
, in
cre
asi
ng
ly f
or
foo
d a
nd
se
rvic
es,
as
livin
g s
tan
da
rds
in C
hin
a im
pro
ve f
urt
he
r o
ver
tim
e.
Acc
ord
ing
to
th
e A
ust
ralia
n G
ove
rnm
en
t, u
nd
er
the
Ch
AF
TA
Ch
ina
co
mm
its
to p
rov
ide
alm
ost
un
ma
tch
ed
acc
ess
fo
r
Au
stra
lian
se
rvic
es
pro
vid
ers
(o
nly
Ho
ng
Ko
ng
an
d M
aca
u,
spe
cia
l ad
min
istr
ati
ve r
eg
ion
s o
f C
hin
a, w
ill h
ave
be
tte
r
acc
ess
). A
cce
ss w
ill b
e im
pro
ved
in a
rou
nd
40
are
as
to le
vels
eit
he
r e
qu
iva
len
t o
r b
ett
er
tha
n t
ho
se e
njo
yed
by
oth
er
na
tio
ns.
To
uri
sm, a
ge
d c
are
, he
alt
h, fi
na
nce
, en
gin
ee
rin
g,
con
stru
cti
on
an
d le
ga
l firm
s a
re a
mo
ng
th
e p
ote
nti
al
be
ne
fici
ari
es.
Ch
ina
is s
ee
kin
g t
o d
eve
lop
its
serv
ice
s se
cto
r
so t
ha
t it
acc
ou
nts
fo
r a
larg
er
sha
re o
f o
utp
ut
an
d g
row
th
an
d t
his
tra
nsi
tio
n is
alr
ea
dy
ha
pp
en
ing
(Fi
gu
re 5
). S
erv
ice
s
acc
ou
nt
for
mo
re t
ha
n 7
0%
of
Au
stra
lia’s
eco
no
my
so w
e
are
we
ll p
lace
d t
o h
elp
ach
ieve
th
at.
Bu
t th
ere
will
be
str
on
g
com
pe
titi
on
fro
m o
the
r co
un
trie
s.
For
ag
ricu
ltu
re, t
he
Ch
AF
TA w
ill e
ven
tua
lly r
em
ove
th
e
ad
va
nta
ge
s e
njo
yed
by
Ne
w Z
ea
lan
d f
arm
ers
un
de
r it
s
FTA
wit
h C
hin
a (
sig
ne
d in
20
08
), in
clu
din
g in
be
ef
an
d d
air
y.
Alt
ho
ug
h it
will
ta
ke a
rou
nd
a d
eca
de
to
clo
se t
he
ga
p
en
tire
ly. A
ust
ralia
n d
air
y fa
rme
rs, h
ow
eve
r, w
ill h
ave
on
e
ad
va
nta
ge
ove
r th
eir
kiw
i co
un
terp
art
s: a
n a
bse
nce
of ‘
safe
gu
ard
’ me
asu
res
sho
uld
ch
ee
se, b
utt
er,
liqu
id m
ilk
or
infa
nt
form
ula
exp
ort
s g
row
ve
ry f
ast
ou
t o
f A
ust
ralia
.
TH
E I
NC
LUS
ION
OF
SE
RV
ICE
S P
LA
YS
TO
AU
ST
RA
LIA
’S S
TR
EN
GT
HS
11
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
CH
INE
SE
IN
VE
ST
ME
NT
IN
TO
AU
ST
RA
LIA
IS
SE
T T
O I
NC
RE
AS
E
Se
cti
on
1 –
Ch
AF
TA O
ve
rvie
w
FIG
UR
E 5
. SE
RV
ICE
S A
RE
BE
CO
MIN
G
MO
RE
IM
PO
RTA
NT
IN
CH
INA
’S G
RO
WT
H
So
urc
e: B
loo
mb
erg
, NB
S, A
NZ
Res
earc
h
Serv
ices
out
put
Indu
stry
out
put
Prim
ary
outp
ut
Year
-to-
date
% c
hang
e
02468
10
12
14
16
18
03
04
05
06
07
08
09
10
11
12
13
14
Bene
fits
for C
hina
Th
e b
en
efi
ts f
or
Ch
ina
are
mu
ltif
ace
ted
. Ta
riff
re
du
cti
on
s
on
Ch
ine
se e
xpo
rts
to A
ust
ralia
will
be
of
som
e b
en
efi
t
to C
hin
ese
bu
sin
ess
es.
In t
urn
, Au
stra
lian
co
nsu
me
rs w
ill
ult
ima
tely
be
ne
fit
fro
m lo
we
r ta
riff
s o
n im
po
rts
fro
m C
hin
a.
Th
e t
imin
g a
nd
ext
en
t o
f th
e p
ass
-th
rou
gh
of
low
er
tari
ffs
will
de
pe
nd
on
va
rio
us
fac
tors
, in
clu
din
g: t
he
tim
ing
an
d r
ate
of
tari
ff r
ed
uc
tio
ns;
cu
rre
nc
y h
ed
gin
g s
tra
teg
ies
of
imp
ort
ers
;
an
d t
he
pri
cin
g p
ow
er
of
imp
ort
ers
. An
y e
ffe
ct
may
no
t b
e
imm
ed
iate
ly a
pp
are
nt
am
id c
ha
ng
ing
exc
ha
ng
e r
ate
s a
nd
the
eff
ec
ts o
f o
the
r fa
cto
rs.
Th
e s
ma
ll si
ze o
f th
e A
ust
ralia
n m
ark
et
me
an
s th
at
tari
ff c
uts
on
imp
ort
s fr
om
Ch
ina
are
th
e m
ost
imp
ort
an
t p
art
of
the
FTA
fro
m C
hin
a’s
pe
rsp
ec
tive
. Ea
sie
r a
cce
ss f
or
pri
va
te C
hin
ese
inve
stm
en
t in
Au
stra
lia o
uts
ide
of
ag
ricu
ltu
re is
als
o a
ke
y
be
ne
fit.
As
sho
wn
in F
igu
re 3
, Au
stra
lia a
lre
ad
y “p
un
che
s
ab
ove
its
we
igh
t” in
te
rms
of
its
sha
re o
f C
hin
a’s
ou
tbo
un
d
inve
stm
en
t. N
atu
rally
, it
is e
xpe
cte
d t
ha
t th
is in
vest
me
nt
flo
w
wo
uld
co
nti
nu
e in
to A
ust
ralia
’s m
inin
g s
ec
tor,
bu
t p
rob
ab
ly
no
t a
t th
e s
pe
ed
of
rece
nt
yea
rs d
uri
ng
th
e m
inin
g in
vest
me
nt
bo
om
. In
vest
me
nt
into
ag
ricu
ltu
re is
als
o e
xpe
cte
d t
o r
ise
giv
en
th
at
ac
tua
l FD
I fro
m C
hin
a is
sti
ll sm
all
de
spit
e r
isin
g
inte
rest
. Wit
h C
hin
a in
cre
asi
ng
ly d
ive
rsif
yin
g it
s o
wn
ind
ust
ria
l
stru
ctu
re t
o h
igh
er
en
d m
an
ufa
ctu
rin
g a
nd
se
rvic
es,
its
glo
ba
l
inve
stm
en
t is
als
o li
kely
to
div
ers
ify.
Ch
ine
se in
vest
me
nt
in A
ust
ralia
n p
rop
ert
y, in
clu
din
g
resi
de
nti
al,
offi
ce a
nd
oth
er
com
me
rcia
l ass
ets
(su
ch a
s
ho
tels
), is
exp
ec
ted
to
re
ma
in s
tro
ng
, re
ga
rdle
ss o
f a
ny
ea
sin
g
in p
roce
ss u
nd
er
the
Ch
AF
TA. T
he
low
er
Au
stra
lian
do
llar
ag
ain
st t
he
yu
an
als
o m
ake
s A
ust
ralia
n a
sse
ts m
ore
att
rac
tive
.
Ch
ine
se a
pp
eti
te t
o in
vest
me
nt
in n
ew
an
d e
xist
ing
Au
stra
lian
infr
ast
ruc
ture
is a
lso
ris
ing
. Ch
ine
se c
om
pa
nie
s a
re s
ho
win
g
inte
rest
in t
he
an
tici
pa
ted
incr
ea
se in
go
vern
me
nt
ass
et
sale
s in
Au
stra
lia o
ver
the
ne
xt f
ew
ye
ars
. In
fa
ct,
th
ere
ha
s
alr
ea
dy
be
en
on
e h
igh
pro
file
exa
mp
le o
f a
Ch
ine
se
com
pa
ny
pu
rch
asi
ng
th
e c
on
stru
cti
on
arm
of
an
Au
stra
lian
com
pa
ny
in p
art
to
ga
in e
xpo
sure
to
th
e a
nti
cip
ate
d
pic
k-u
p in
ne
w in
fra
stru
ctu
re s
pe
nd
ing
in c
om
ing
ye
ars
.
Th
e a
pp
are
nt
rela
xati
on
of
lab
ou
r m
ob
ility
be
twe
en
Ch
ina
an
d A
ust
ralia
un
de
r th
e C
hA
FTA
(a
nd
mo
re b
roa
dly
) m
ake
s
such
inve
stm
en
ts m
ore
att
rac
tive
.
As
Ch
ina
tra
nsi
tio
ns
to a
mo
re s
erv
ice
s b
ase
d e
con
om
y,
con
sum
ers
will
be
ne
fit
fro
m t
he
incr
ea
sin
g im
po
rts
of
qu
alit
y h
ea
lth
an
d a
ge
d c
are
se
rvic
es
an
d e
asi
er
mo
vem
en
t
of
wo
rke
rs b
etw
ee
n t
he
tw
o c
ou
ntr
ies.
Fro
m a
bro
ad
er
pe
rsp
ec
tive
, a F
TA w
ith
an
op
en
an
d
ad
va
nce
d e
con
om
y lik
e A
ust
ralia
will
pu
sh f
orw
ard
Ch
ina’
s m
ark
et-
ori
en
ted
re
form
s.
FIG
UR
E 4
. SH
OR
T-T
ER
M V
ISIT
OR
S T
O A
US
TR
AL
IA F
RO
M C
HIN
A
So
urc
e: A
BS
, AN
Z R
esea
rch
Shar
e of
tota
l sho
rt-t
erm
arr
ival
s (R
HS)
Shor
t-te
rm a
rriv
als
from
Chi
na (L
HS)
0246810
12
14
16
0
10
20
30
40
50
60
70
80
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
Shar
e of
tota
l sho
rt-t
erm
arr
ival
s, %
Num
ber p
er m
onth
(000
s)
13
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
1 –
Ch
AF
TA O
ve
rvie
w
LAB
OU
R M
OB
ILIT
Y
• A
cco
rdin
g t
o t
he
Go
vern
me
nt,
th
e C
hA
FTA
will
re
du
ce
ba
rrie
rs t
o la
bo
ur
mo
bili
ty a
nd
imp
rove
te
mp
ora
ry e
ntr
y
acc
ess
wit
hin
th
e c
on
text
of
ea
ch c
ou
ntr
y’s
exi
stin
g
imm
igra
tio
n a
nd
em
plo
yme
nt
fra
me
wo
rks
an
d s
afe
gu
ard
s.
• N
ota
bly
, Ch
ine
se-o
wn
ed
co
mp
an
ies
reg
iste
red
in A
ust
ralia
un
de
rta
kin
g la
rge
infr
ast
ruc
ture
de
velo
pm
en
t p
roje
cts
ab
ove
AU
D1
50
mill
ion
will
be
ab
le t
o n
eg
oti
ate
, sim
ilarl
y to
Au
stra
lian
bu
sin
ess
, in
cre
ase
d la
bo
ur
fle
xib
iliti
es
for
spe
cifi
c
pro
jec
ts. T
his
will
be
ass
ess
ed
on
a c
ase
-by-
case
ba
sis
un
de
r
arr
an
ge
me
nts
sim
ilar
to t
he
fo
rme
r E
nte
rpri
se M
igra
tio
n
Ag
ree
me
nts
(E
MA
s) in
tro
du
ced
to
ass
ist
in a
dd
ress
ing
skill
s n
ee
ds
of
the
re
sou
rce
se
cto
r. E
MA
s w
ere
ne
go
tia
ted
wit
h t
he
pro
jec
t o
wn
er
an
d s
et
the
te
rms
by
wh
ich
fo
reig
n
wo
rke
rs c
ou
ld b
e e
ng
ag
ed
on
th
e p
roje
ct,
as
we
ll a
s
ou
tlin
ing
tra
inin
g c
om
mit
me
nts
th
at
ha
d t
o b
e m
et
by
the
pro
jec
t. W
ork
ers
we
re s
ub
jec
t to
th
e W
ork
er
Pro
tec
tio
n A
ct
20
09
an
d w
ere
ob
lige
d t
o p
ay A
ust
ralia
n m
ark
et
sala
ry r
ate
s.
• B
roa
dly
sp
ea
kin
g, i
t a
pp
ea
rs t
ha
t th
e A
ust
ralia
n G
ove
rnm
en
t
is p
ush
ing
ah
ea
d w
ith
se
vera
l in
itia
tive
s to
ma
ke it
ea
sie
r
for
skill
ed
fo
reig
n w
ork
ers
to
co
me
to
Au
stra
lia, a
t le
ast
tem
po
rari
ly. F
or
inst
an
ce, t
he
Imm
igra
tio
n D
ep
art
me
nt
ha
s p
rop
ose
d a
ne
w t
em
po
rary
vis
a w
hic
h w
ou
ld a
llow
spe
cia
lise
d w
ork
ers
to
en
ter
Au
stra
lia f
or
up
to
on
e y
ea
r
wit
ho
ut
the
ne
ed
fo
r a
45
7 s
kille
d w
ork
er
vis
a.
AG
RIC
ULT
UR
E
• T
he
Ch
AF
TA w
ill h
ave
a s
ign
ifica
nt
imp
act
for
the
ag
ricu
ltu
re
sec
tor,
wit
h b
oth
win
ne
rs a
nd
lo
sers
. Ta
riff
s w
ill b
e
elim
ina
ted
on
a n
um
be
r o
f im
po
rta
nt
com
mo
dit
ies
such
as
be
ef
an
d d
air
y, h
ow
eve
r, th
e a
gre
em
en
t m
isse
d
the
ma
rk o
n c
om
mo
dit
ies
incl
ud
ing
co
tto
n, r
ice
, su
ga
r
and
oils
ee
ds.
In f
act
the
co
mm
od
ity
“be
ne
fici
arie
s” c
urr
en
tly
acc
ou
nt
for
less
th
an
25
% o
f a
gri
cult
ure
re
late
d e
xpo
rts
to C
hin
a, i
mp
lyin
g t
ha
t fu
rth
er
op
po
rtu
nit
y m
ay e
xist
as
ne
go
tia
tio
ns
evo
lve
.
• B
ee
f: A
ust
ralia
is a
lre
ad
y C
hin
a’s
pri
ma
ry s
up
plie
r o
f b
ee
f
an
d w
hile
th
e e
ven
tua
l elim
ina
tio
n o
f ta
riff
s a
re p
osi
tive
,
the
re w
ill b
e q
ue
stio
ns
on
th
e a
bili
ty o
f A
ust
ralia
n p
rod
uce
rs
to m
ee
t C
hin
a’s
gro
win
g d
em
an
d. M
an
y e
xpo
rte
rs m
ay
be
re
luc
tan
t to
sw
itch
exp
ort
vo
lum
es
to C
hin
a a
nd
ris
k
be
ing
sh
ut
ou
t o
f th
e k
ey
Ind
on
esi
an
ma
rke
t. T
imin
g
on
th
e C
hA
FTA
is im
po
rta
nt
as
the
sta
ge
d e
limin
ati
on
of
be
ef
tari
ffs
will
be
ne
fit
Au
stra
lian
pro
du
cers
at
a t
ime
wh
en
co
mp
eti
tio
n f
rom
US
an
d B
razi
lian
pro
du
cers
is li
kely
to
incr
ea
se w
he
n t
he
y a
re f
ully
allo
we
d b
ack
into
th
e C
hin
ese
ma
rke
t.
• D
air
y: T
he
inta
ng
ible
be
ne
fit
of
da
iry
’s in
clu
sio
n is
th
e
imp
ac
t o
n s
en
tim
en
t, a
s p
rod
uce
rs h
ave
oft
en
vie
we
d
the
ad
va
nta
ge
th
at
Ne
w Z
ea
lan
d h
as
ha
d, c
are
of
its
ow
n
FTA
wit
h C
hin
a, a
s b
ein
g h
igh
ly s
ign
ifica
nt.
Wh
ile it
will
take
up
to
11
ye
ars
fo
r ta
riff
s to
be
elim
ina
ted
, pro
gre
ss
in t
his
are
a is
a g
rea
t w
in f
or
the
ind
ust
ry. T
he
Ch
AF
TA is
a m
ajo
r p
osi
tive
fo
r d
air
y b
ut
in a
glo
ba
lly c
om
pe
titi
ve
ma
rke
t th
e d
air
y se
cto
r n
ee
ds
to c
on
tin
ue
to
inn
ov
ate
an
d
bu
ild a
bra
nd
to
win
ma
rke
t sh
are
in a
gro
win
g m
ark
et.
Th
ese
an
no
un
cem
en
ts a
re a
lso
like
ly t
o le
ad
to
fu
rth
er
inve
stm
en
t in
th
e s
ec
tor,
pa
rtic
ula
rly
tow
ard
s p
roce
ssin
g
an
d p
rod
uc
tio
n in
a b
id t
o s
ecu
re s
up
ply
.
• W
ine
: Th
e C
hA
FTA
po
siti
on
s A
ust
ralia
to
re
ga
in g
rou
nd
ove
r th
eir
Ch
ilea
n c
om
pe
tito
rs, w
ho
hav
e li
fte
d e
xpo
rts
seve
n f
old
sin
ce t
he
intr
od
uc
tio
n o
f th
e C
hin
a-C
hile
FTA
.
Wit
h C
hin
a’s
ma
jor
Au
stra
lian
win
e im
po
rt c
ate
go
ry b
ein
g
at
the
pre
miu
m p
rice
-po
int,
th
e t
ari
ff c
ut
fro
m 1
5%
to
ze
ro
ove
r fo
ur
yea
rs w
ill a
llow
th
e A
ust
ralia
n in
du
stry
to
bo
ost
the
co
mp
eti
tive
ne
ss o
f it
s h
igh
-en
d p
rod
uc
ts.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
wo
rkin
g c
ap
ita
l an
d s
up
ply
cha
in m
an
ag
emen
t, R
MB
liq
uid
ity
ma
na
gem
ent,
fore
ign
exch
an
ge
risk
ma
na
gem
ent,
co
mm
od
ity
risk
ma
na
gem
ent
an
d a
sset
ba
sed
gea
rin
g.
• S
ee
AN
Z L
ive
: AN
Z R
esea
rch
: FTA
po
siti
on
s A
gri
into
th
e
Asi
an
cen
tury
(19
th N
ov,
20
14
).
BE
EF,
DA
IRY
AN
D W
INE
AR
E A
MO
NG
ST
TH
E K
EY
AG
RIC
ULT
UR
E B
EN
EF
ICIA
RIE
S
15
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
1 –
Ch
AF
TA O
ve
rvie
w
MA
NU
FAC
TU
RIN
G
• Ta
riff
s o
n a
ra
ng
e o
f C
hin
ese
imp
ort
s w
ill b
e r
ed
uce
d
or
elim
ina
ted
bu
t A
ust
ralia
’s m
an
ufa
ctu
rin
g in
du
stry
ha
s
con
solid
ate
d a
nd
evo
lve
d s
uch
th
at
the
to
tal b
en
efi
t to
the
ind
ust
ry is
like
ly t
o b
e m
ixe
d.
• A
ust
ralia
will
ph
ase
ou
t ta
riff
s o
n m
an
ufa
ctu
red
imp
ort
s
fro
m C
hin
a o
f cl
oth
es,
fo
otw
ea
r, h
ou
seh
old
ele
ctr
on
ics,
cars
an
d c
ar
com
po
ne
nts
by
20
19
.
• P
ha
rma
ceu
tica
ls a
nd
vit
am
ins:
Acr
oss
th
e m
an
ufa
ctu
rin
g
sec
tor,
the
big
ge
st o
pp
ort
un
ity
lies
in A
ust
ralia
’s g
lob
ally
inte
gra
ted
ph
arm
ace
uti
cal i
nd
ust
ry, w
hic
h a
lre
ad
y e
xpo
rts
pro
du
cts
to
Ch
ina
wo
rth
alm
ost
AU
D6
00
m a
nn
ua
lly.
Ch
ina’
s g
row
ing
mid
dle
cla
ss a
nd
de
mo
gra
ph
ic p
rofi
le
ma
ke t
he
ma
rke
t a
ttra
cti
ve t
o b
oth
ph
arm
ace
uti
cal
exp
ort
ers
in a
dd
itio
n t
o v
ita
min
pro
vid
ers
. Ta
riff
s o
f u
p
to 1
0%
on
ph
arm
ace
uti
cals
, in
clu
din
g v
ita
min
s a
nd
he
alt
h
pro
du
cts
, will
be
re
mo
ved
eit
he
r o
n e
ntr
y in
to f
orc
e o
r
ph
ase
d o
ut
ove
r fo
ur
yea
rs.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
wo
rkin
g c
ap
ita
l an
d s
up
ply
cha
in m
an
ag
emen
t, R
MB
liq
uid
ity
ma
na
gem
ent,
fore
ign
exch
an
ge
risk
ma
na
gem
ent,
co
mm
od
ity
risk
ma
na
gem
ent,
targ
et c
ap
ita
l str
uct
uri
ng
an
d fu
nd
ing
.
CO
NS
TR
UC
TIO
N A
ND
EN
GIN
EE
RIN
G S
ER
VIC
ES
• C
hin
a w
ill g
ive
Au
stra
lian
co
nst
ruc
tio
n c
om
pa
nie
s
acc
ess
to
ca
rry
ou
t co
nst
ruc
tio
n w
ork
in S
ha
ng
ha
i if
the
y
are
est
ab
lish
ed
in t
he
Sh
an
gh
ai F
ree
Tra
de
Zo
ne
(S
FT
Z)
an
d p
art
ne
r w
ith
Ch
ine
se c
om
pa
nie
s.
• A
ust
ralia
n a
rch
ite
ctu
ral a
nd
en
gin
ee
rin
g fi
rms
will
be
allo
we
d t
o o
bta
in b
roa
de
r b
usi
ne
ss li
cen
ses
to c
arr
y
ou
t w
ork
on
co
nst
ruc
tio
n p
roje
cts
in C
hin
a.
• Te
mp
ora
ry a
cce
ss f
or
Ch
ine
se w
ork
ers
ca
n b
e n
eg
oti
ate
d
to w
ork
on
ma
jor
pro
jec
ts u
nd
ert
ake
n b
y C
hin
ese
com
pa
nie
s in
Au
stra
lia w
ort
h m
ore
th
an
AU
D1
50
m
if t
he
ski
lls a
re u
nav
aila
ble
loca
lly. S
ee
La
bo
ur
Mo
bili
ty.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
per
form
an
ce g
ua
ran
tees
,
RM
B li
qu
idit
y m
an
ag
emen
t, fo
reig
n e
xch
an
ge
risk
ma
na
gem
ent,
ta
rget
ca
pit
al s
tru
ctu
rin
g a
nd
fun
din
g.
FIN
AN
CIA
L S
ER
VIC
ES
• U
np
rece
de
nte
d n
ew
an
d im
pro
ved
acc
ess
fra
me
wo
rks
will
allo
w A
ust
ralia
n p
rov
ide
rs o
f b
an
kin
g, i
nsu
ran
ce, f
un
ds
ma
na
ge
me
nt,
se
curi
tisa
tio
n, s
ecu
riti
es
an
d f
utu
res
serv
ice
s
will
be
ab
le t
o b
ett
er
pu
rsu
e c
om
me
rcia
l op
po
rtu
nit
ies
in o
ne
of
the
wo
rld
’s f
ast
est
gro
win
g s
erv
ice
s m
ark
ets
.
• In
sura
nce
: A
n a
bili
ty t
o f
ully
acc
ess
Ch
ina’
s st
atu
tory
thir
d-p
art
y co
mp
uls
ory
mo
tor
veh
icle
insu
ran
ce m
ark
et.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B p
aym
ents
an
d c
ash
ma
na
gem
ent,
FX
ris
k m
an
ag
emen
t, in
vest
men
t so
urc
ing
an
d h
edg
ing
, reg
ula
tory
ca
pit
al s
olu
tio
ns,
an
d d
ebt
fun
din
g.
• F
un
ds
ma
na
ge
me
nt:
Au
stra
lia w
as
gra
nte
d a
RM
B5
0 b
illio
n
qu
ota
(a
rou
nd
AU
D1
0 b
illio
n)
un
de
r R
MB
Qu
alifi
ed
Fo
reig
n
Inst
itu
tio
na
l In
vest
or
(RQ
FII)
pro
gra
m t
o in
vest
off
sho
re
RM
B in
Ch
ine
se o
nsh
ore
fin
an
cia
l in
stru
me
nts
; Au
stra
lian
secu
riti
es
bro
kera
ge
an
d a
dv
iso
ry fi
rms
can
pro
vid
e
cro
ss-b
ord
er
secu
riti
es
tra
din
g, c
ust
od
y, a
dv
ice
an
d p
ort
folio
ma
na
ge
me
nt
serv
ice
s to
Ch
ine
se in
stit
uti
on
al i
nve
sto
rs
allo
we
d t
o in
vest
off
sho
re.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B li
qu
idit
y m
an
ag
emen
t,
FX r
isk
ma
na
gem
ent,
dep
osi
t a
nd
yie
ld s
olu
tio
ns,
inve
stm
ent
sou
rcin
g a
nd
hed
gin
g, a
sset
ba
sed
gea
rin
g.
• S
ecu
riti
es
an
d f
utu
res:
Jo
int
ven
ture
s w
ith
up
to
49
%
Au
stra
lian
ow
ne
rsh
ip; a
bili
ty t
o c
on
du
ct d
om
est
ic s
ecu
riti
es
fun
ds
man
age
me
nt
bu
sin
ess
.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B p
aym
ents
an
d c
ash
ma
na
gem
ent,
liq
uid
ity
solu
tio
ns,
FX
ris
k m
an
ag
emen
t, c
ap
ita
l
stru
ctu
re a
nd
fun
din
g.
• P
riv
ate
eq
uit
y:
Furt
he
r w
ork
on
acc
ess
to
Ch
ine
se
inve
stm
en
t o
pp
ort
un
itie
s.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
ad
viso
ry, a
cqu
isit
ion
fin
an
ce,
cap
ita
l ma
rket
s a
cces
s, h
edg
ing
; fo
r in
vest
ee c
om
pa
nie
s -
tra
nsa
ctio
n b
an
kin
g, w
ork
ing
ca
pit
al a
nd
fun
din
g.
• B
an
kin
g: R
em
ova
l of
min
imu
m R
MB
10
0m
wo
rkin
g c
apit
al
req
uir
em
en
ts f
or
sub
sid
iari
es;
su
bsi
dia
rie
s w
ill b
e t
he
firs
t
fore
ign
ban
ks e
ligib
le t
o e
ng
age
in c
red
it a
sse
t se
curi
tisa
tio
n.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
stru
ctu
rin
g, p
ort
folio
ma
na
gem
ent,
fun
din
g a
nd
dis
trib
uti
on
.
HE
ALT
H A
ND
AG
ED
CA
RE
• A
ust
ralia
’s h
ea
lth
care
ind
ust
ry is
gro
win
g r
ap
idly
an
d
is n
ow
th
e c
ou
ntr
y’s
big
ge
st e
mp
loye
r. A
ust
ralia
’s a
bili
ty
to s
ucc
ess
fully
op
era
te h
osp
ita
ls, a
ge
d c
are
an
d o
the
r
he
alt
h r
ela
ted
fa
cilit
ies
will
be
a c
om
pe
titi
ve a
dv
an
tag
e
for
bu
sin
ess
es
tha
t d
eci
de
to
ta
ke a
dv
an
tag
e o
f “b
est
eve
r
acc
ess
” to
th
e d
om
est
ic C
hin
ese
ma
rke
t.
• C
hin
a’s
he
alt
h s
ec
tor
rem
ain
s ve
ry u
nd
erd
eve
lop
ed
an
d
its
po
pu
lati
on
is a
ge
ing
qu
ickl
y, p
rov
idin
g a
sig
nifi
can
t
de
ma
nd
ta
ilwin
d t
ha
t sh
ou
ld g
row
un
til a
t le
ast
20
30
wh
en
th
e p
op
ula
tio
n is
exp
ec
ted
to
pe
ak.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B li
qu
idit
y m
an
ag
emen
t,
fore
ign
exc
ha
ng
e ri
sk m
an
ag
emen
t, t
arg
et c
ap
ita
l str
uct
uri
ng
an
d a
sset
ba
sed
gea
rin
g.
ED
UC
AT
ION
• C
hin
a is
Au
stra
lia’s
larg
est
exp
ort
ma
rke
t fo
r e
du
cati
on
serv
ice
s (w
ort
h a
rou
nd
AU
D4
bill
ion
in 2
01
3)
an
d a
lso
on
e t
ha
t is
hig
hly
pro
tec
ted
.
• T
he
FTA
pro
vid
ed
th
e s
ee
min
gly
insi
gn
ifica
nt
be
ne
fit
to
Au
stra
lian
ed
uca
tio
n p
rov
ide
rs o
f a
dd
ing
th
eir
na
me
to
a g
ove
rnm
en
t w
eb
site
bu
t th
is s
ite
is t
he
pri
ma
ry c
ha
nn
el
for
stu
de
nts
to
ch
oo
se a
n e
du
cati
on
pro
vid
er
for
stu
dyi
ng
ab
roa
d a
nd
is h
igh
ly t
rust
ed
(7
7 in
stit
uti
on
s w
ill b
e a
dd
ed
to t
he
exi
stin
g 1
05
Au
stra
lian
inst
itu
tio
ns
on
th
e w
eb
site
).
In f
ac
t, a
lmo
st 9
0%
of
Ch
ine
se s
tud
en
ts s
tud
yin
g in
Au
stra
lia
use
d a
pro
vid
er
liste
d o
n t
he
Min
istr
y’s
we
bsi
te. T
his
is
like
ly t
o p
rov
ide
incr
ea
sed
exp
osu
re a
nd
ult
ima
tely
stu
de
nt
de
ma
nd
to
Au
stra
lian
ed
uca
tio
n p
rov
ide
rs.
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B li
qu
idit
y m
an
ag
emen
t,
fore
ign
exc
ha
ng
e ri
sk m
an
ag
emen
t a
nd
fun
din
g.
TOU
RIS
M A
ND
HO
SP
ITA
LIT
Y
• A
ust
ralia
n s
erv
ice
pro
vid
ers
will
be
ab
le t
o c
on
stru
ct,
ren
ov
ate
an
d o
pe
rate
wh
olly
Au
stra
lian
-ow
ne
d h
ote
ls
an
d r
est
au
ran
ts in
Ch
ina
. Au
stra
lian
tra
vel a
ge
nci
es/
tou
r
op
era
tors
will
als
o b
e a
ble
to
est
ab
lish
wh
olly
Au
stra
lian
-ow
ne
d s
ub
sid
iari
es
in C
hin
a f
or
tou
rs
wit
hin
Ch
ina
fo
r b
oth
do
me
stic
an
d f
ore
ign
tra
velle
rs.
• U
p t
o 5
,00
0 C
hin
ese
wo
rk a
nd
ho
liday
vis
as
will
be
pro
vid
ed
by
Au
stra
lia. T
he
se a
re v
isa
s g
ran
ted
to
yo
un
g p
eo
ple
for
up
to
a y
ea
r w
ho
wa
nt
to t
rave
l an
d w
ork
in A
ust
ralia
.
Th
is c
ha
ng
e w
ill a
dd
mo
de
stly
to
th
e s
ign
ifica
nt
nu
mb
er
of
such
vis
as
alr
ea
dy
gra
nte
d b
y A
ust
ralia
wit
h a
bo
ut
24
0,0
00
gra
nte
d t
o o
the
r co
un
trie
s in
FY
20
14
.
• To
uri
sm A
ust
ralia
pro
jec
ts t
ha
t C
hin
a w
ill c
on
trib
ute
ne
arl
y
on
e-q
ua
rte
r o
f th
e g
row
th in
th
e n
um
be
r o
f v
isit
ors
to
Au
stra
lia o
ver
the
de
cad
e t
o F
Y2
02
3 a
nd
th
at
ab
ou
t
two
-fift
hs
of
inb
ou
nd
to
uri
sm e
xpe
nd
itu
re w
ill b
e s
ou
rce
d
fro
m C
hin
a o
ver
tha
t p
eri
od
. (T
he
Go
vern
me
nt
als
o r
ece
ntl
y
an
no
un
ced
sig
nifi
can
t in
cre
ase
s to
allo
wa
ble
air
line
cap
aci
ty b
etw
ee
n A
ust
ralia
an
d C
hin
a.)
• K
ey c
lien
t co
nsi
der
ati
on
s in
clu
de
RM
B li
qu
idit
y m
an
ag
emen
t,
fore
ign
exc
ha
ng
e ri
sk m
an
ag
emen
t a
nd
fun
din
g.
OT
HE
R S
ER
VIC
ES
• A
ust
ralia
n la
w fi
rms
will
be
ab
le t
o e
sta
blis
h c
om
me
rcia
l
ass
oci
ati
on
s w
ith
Ch
ine
se la
w fi
rms
in t
he
SF
TZ
. Th
is w
ill
allo
w t
he
m t
o o
ffe
r A
ust
ralia
n, C
hin
ese
an
d in
tern
ati
on
al
leg
al s
erv
ice
s th
rou
gh
a c
om
me
rcia
l pre
sen
ce, w
ith
ou
t
rest
ric
tio
ns
on
th
e lo
cati
on
of
clie
nts
.
• Th
ere
are
als
o b
en
efi
ts fo
r A
ust
ralia
n fi
rms
in: m
anu
fact
uri
ng
and
min
ing
se
rvic
es;
arc
hit
ect
ure
an
d u
rban
pla
nn
ing
se
rvic
es;
tran
spo
rt s
erv
ice
s; a
nd
te
leco
mm
un
icat
ion
s co
mp
anie
s.
RE
SO
UR
CE
S
• T
he
re
du
cti
on
in t
ari
ffs
on
so
me
of
Au
stra
lia’s
re
sou
rce
exp
ort
s to
Ch
ina
is a
po
siti
ve b
ut
AN
Z R
ese
arc
h b
elie
ves
tha
t th
e o
vera
ll b
en
efi
t to
Au
stra
lia’s
re
sou
rce
s se
cto
r
will
be
min
ima
l, a
s th
e t
ari
ff r
ed
uc
tio
n o
n h
igh
vo
lum
e
exp
ort
s w
ill b
e lo
w.
• S
ee
AN
Z L
ive
: AN
Z R
esea
rch
: Lim
ited
ben
efit
for
Res
ou
rces
fro
m C
hin
a-A
ust
ralia
FTA
(20
th N
ov,
20
14
).
MA
NY
AU
ST
RA
LIA
N S
ER
VIC
ES
BU
SIN
ES
SE
S W
ILL
EN
JOY
“BE
ST
EV
ER
AC
CE
SS
”
“BE
RF
ER
FE
RU
M, S
I D
OLU
TA P
RO
IP
ITIA
SIT
AT
I O
DIA
S E
T M
AIO
VO
LUP
TAT
”
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
SE
CT
ION
2
AU
ST
RA
LIA
N O
PP
OR
TU
NIT
IES
FR
OM
TH
E C
HA
FTA
A lo
ok a
t whi
ch a
reas
and
indu
strie
s
will
ben
efit f
rom
the
ChA
FTA
Wh
en
it c
om
es
to F
TAs
all
pro
du
cts
an
d in
du
stri
es
are
no
t
cre
ate
d e
qu
al.
Wh
ile t
he
ult
ima
te a
im o
f a
FTA
is t
o c
rea
te
tra
de
an
d t
he
refo
re c
rea
te in
com
e in
bo
th c
ou
ntr
ies,
FTA
s
typ
ica
lly d
o n
ot
cove
r e
very
exp
ort
an
d im
po
rt. A
s su
ch,
the
be
ne
fits
an
d o
pp
ort
un
itie
s w
ill v
ary
.
AN
Z O
pp
ort
un
ity
Ch
ina
use
s b
oth
qu
an
tita
tive
an
d q
ua
lita
tive
me
tho
ds
to id
en
tify
wh
ere
th
e m
ajo
r o
pp
ort
un
itie
s a
re f
or
Au
stra
lian
bu
sin
ess
es
exp
ort
ing
or
loo
kin
g t
o e
xpo
rt t
o C
hin
a.
Alt
ho
ug
h t
he
fu
ll d
eta
il fr
om
th
e C
hA
FTA
is n
ot
exp
ec
ted
un
til A
pri
l 20
15
, th
e k
ey
leve
rs in
de
term
inin
g t
he
siz
e o
f
the
op
po
rtu
nit
y ca
n s
till
be
de
term
ine
d.
So
me
of
the
ke
y fa
cto
rs t
o d
ete
rmin
e t
he
str
en
gth
of
the
exp
ort
op
po
rtu
nit
y fo
r A
ust
ralia
n b
usi
ne
sse
s a
cro
ss a
ll
pro
du
ct
cate
go
rie
s a
nd
ind
ust
rie
s w
ill in
clu
de
:
• A
ust
ralia
’s r
ela
tive
str
en
gth
, siz
e, a
nd
co
st a
dv
an
tag
e
rela
tive
to
th
e C
hin
ese
do
me
stic
off
eri
ng
an
d s
ou
rce
s
fro
m o
the
r co
un
trie
s
• T
he
re
lati
ve p
rice
ela
stic
ity
of
the
go
od
/se
rvic
e
• T
he
ma
gn
itu
de
of
the
ta
riff
re
du
cti
on
• A
ny
ma
jor
diff
ere
nce
s in
qu
alit
y o
f th
e p
rod
uc
t/se
rvic
e
com
pa
red
to
wh
at’
s av
aila
ble
in C
hin
a
NO
T A
LL A
RE
AS
WIL
L B
EN
EF
IT
AN
Z’s
an
aly
sis
fou
nd
th
at
Au
stra
lia’s
op
po
rtu
nit
ies
are
lik
ely
to b
e d
ee
p a
nd
na
rro
w in
so
me
are
as
an
d l
arg
ely
imm
ate
ria
l
in o
the
rs. F
or
inst
an
ce
, Au
stra
lia’s
exp
ort
s to
Ch
ina
of
ca
r
en
gin
es
we
re w
ort
h o
ve
r A
UD
10
2 m
illio
n in
20
13
. Ho
we
ve
r,
po
ten
tia
l re
alis
ed
be
ne
fits
to
Au
stra
lian
bu
sin
ess
es
will
be
lo
w, a
s th
e m
ajo
r d
om
est
ic a
uto
mo
tiv
e m
an
ufa
ctu
rers
are
exi
tin
g A
ust
ralia
. Th
is w
ill h
av
e a
pro
fou
nd
imp
ac
t o
n
ca
pa
cit
y a
s a
sso
cia
ted
ori
gin
al
eq
uip
me
nt
ma
nu
fac
ture
rs
are
fo
rce
d t
o r
ea
lign
th
eir
str
ate
gy
giv
en
th
e im
pe
nd
ing
imp
ac
t o
n t
he
ir f
utu
re s
ale
s.
Re
sou
rce
s a
re a
no
the
r a
rea
wh
ere
th
ere
will
be
lim
ite
d u
psi
de
po
st t
he
Ch
AF
TA a
s e
xist
ing
ta
riff
s o
n t
he
ma
jor
com
mo
dit
ies
are
alr
ea
dy
low
. De
spit
e s
ign
ifica
nt
exp
ort
vo
lum
es
to C
hin
a
of
reso
urc
es
incl
ud
ing
co
kin
g c
oa
l, n
on
-co
kin
g c
oa
l an
d
cop
pe
r, th
e c
ha
ng
e in
ta
riff
s w
ill n
ot
be
a c
ata
lyst
to
dri
ve
ma
teri
al v
olu
me
ga
ins
or
ne
w e
xpo
rt o
pp
ort
un
itie
s fo
r
Au
stra
lian
bu
sin
ess
es.
Th
e t
ari
ff e
limin
ati
on
may
re
sult
in a
slig
ht
piv
ot
tow
ard
s A
ust
ralia
n e
xpo
rts,
lea
din
g t
o
po
ten
tia
l ma
rke
t sh
are
ga
ins
for
Au
stra
lia r
ela
tive
to
oth
er
cou
ntr
ies,
ho
we
ver,
the
ext
en
t o
f th
is c
ha
ng
e is
exp
ec
ted
to b
e im
ma
teri
al.
TH
E L
AR
GE
ST
OP
PO
RT
UN
ITIE
S
Th
e f
ort
hco
min
g d
eta
il o
f p
rod
uc
t ca
teg
ory
ta
riff
ch
an
ge
s w
ill
pro
vid
e e
xtra
cla
rity
on
wh
ere
th
e o
pp
ort
un
itie
s fo
r A
ust
ralia
n
bu
sin
ess
es
may
be
. Wh
at
we
kn
ow
no
w t
ho
ug
h is
th
at
the
larg
est
ag
gre
ga
te o
pp
ort
un
itie
s a
re li
kely
to
be
(in
no
ord
er)
:
• A
gri
cult
ure
incl
ud
ing
da
iry,
win
e a
nd
be
ef
• 3
rd p
art
y lia
bili
ty m
oto
r ve
hic
le in
sura
nce
• Fu
nd
s m
an
ag
em
en
t
• E
du
cati
on
• H
ea
lth
(a
ge
d c
are
an
d h
osp
ita
ls)
• V
ita
min
s
For
ag
ed
ca
re, h
osp
ita
ls a
nd
3rd
pa
rty
lia
bili
ty m
oto
r
ve
hic
le in
sura
nc
e, t
he
re is
ad
de
d c
om
ple
xity
co
mp
are
d
wit
h a
tra
dit
ion
al
tra
de
flo
w r
ela
tio
nsh
ip a
s w
ho
lly o
wn
ed
sub
sid
iari
es
ne
ed
to
be
cre
ate
d a
nd
op
era
ted
in C
hin
a.
As
suc
h, u
nd
ers
tan
din
g l
oc
al
ma
rke
t d
yn
am
ics,
bu
sin
ess
stru
ctu
res,
do
me
stic
la
ws
an
d c
ap
ita
l re
qu
ire
me
nts
will
be
co
me
a c
riti
ca
l su
cc
ess
fa
cto
r. H
ow
to
op
era
te
am
idst
th
is c
om
ple
xity
is c
ov
ere
d o
ff in
mo
re d
eta
il in
Sec
tio
n 3
– W
ha
t A
ust
ralia
n b
usi
nes
ses
sho
uld
be
do
ing
an
d S
ecti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et.
Wh
ile t
he
op
po
rtu
nit
y m
ay b
e h
igh
, th
e a
dd
ed
bu
sin
ess
an
d e
xecu
tio
n c
om
ple
xity
may
lim
it t
he
am
ou
nt
of
Au
stra
lian
bu
sin
ess
es
tha
t h
ave
th
e c
ap
ab
ility
an
d/o
r ca
pit
al t
o c
om
pe
te
in a
larg
e f
ore
ign
ma
rke
t.
17
17
IT P
AY
S T
O P
LAY
IN N
ICH
ES
De
spit
e s
tro
ng
co
ve
rag
e o
n t
he
ma
jor
exp
ort
op
po
rtu
nit
ies
for
Au
stra
lia, m
an
y b
usi
ne
sse
s d
o n
ot
take
ad
va
nta
ge
of
FTA
s, a
s th
ey
are
eit
he
r u
na
wa
re o
r u
nsu
re h
ow
to
ca
ptu
re
the
op
po
rtu
nit
y.
Th
e o
bje
ctiv
e o
f A
NZ
Op
po
rtu
nit
y C
hin
a is
to
pro
vid
e A
ust
ralia
n
bu
sin
ess
es
wit
h a
vie
w o
n w
he
re t
he
op
po
rtu
nit
ies
are
, wh
at
the
y sh
ou
ld k
no
w w
he
n d
eal
ing
wit
h C
hin
a fr
om
a b
anki
ng
and
cap
ital
pe
rsp
ect
ive
an
d h
ow
th
ey
can
su
cce
ssfu
lly e
xecu
te
the
ir C
hin
a st
rate
gy.
Pla
yin
g in
nic
he
s ca
n b
e a
ma
jor
ad
va
nta
ge
fo
r a
nu
mb
er
of
Au
stra
lian
bu
sin
ess
es.
Th
e f
ull
Ch
AF
TA t
ext
is e
xpe
cte
d
to b
e 1
,50
0 p
ag
es
lon
g c
ove
rin
g a
rou
nd
8,5
00
ta
riff
lin
es.
Th
e m
ajo
rity
of
exp
ort
s to
Ch
ina
(9
5%
) w
ill e
ven
tua
lly b
e
tari
ff f
ree
an
d f
or
som
e p
rod
uc
t ca
teg
ori
es
tha
t w
ill r
esu
lt
in a
sig
nifi
can
t re
du
cti
on
in p
rice
an
d t
he
refo
re, t
he
po
ten
tia
l
att
rac
tive
ne
ss t
o C
hin
ese
bu
sin
ess
an
d c
on
sum
ers
.
Exa
mp
les
of
maj
or
tari
ff r
ed
uct
ion
s in
sm
alle
r ca
teg
ori
es
incl
ud
e
a 2
5%
tar
iff r
ed
uct
ion
in h
on
ey
rela
ted
pro
du
cts
ove
r fi
ve y
ear
s,
a 2
1%
tar
iff r
ed
uct
ion
on
pe
arls
wit
hin
fou
r ye
ars,
a 1
0-2
5%
tar
iff
red
uct
ion
on
var
iou
s n
uts
ove
r fo
ur
year
s, a
15
% t
ariff
re
du
ctio
n
on
ro
ck lo
bst
er
in fo
ur
year
s an
d u
p t
o a
30
% t
ariff
re
du
ctio
n
for
vari
ou
s fr
uit
juic
es.
Th
ese
are
no
t m
ajo
r e
xpo
rt c
ate
go
rie
s to
Ch
ina
, ho
we
ve
r,
the
sh
arp
dro
p in
pri
ce
s m
ake
th
ese
Au
stra
lian
pro
du
cts
sig
nifi
ca
ntl
y m
ore
att
rac
tiv
e t
o C
hin
ese
co
nsu
me
rs a
nd
rela
tiv
ely
mo
re c
om
pe
titi
ve
co
mp
are
d w
ith
th
e s
am
e
pro
du
ct
fro
m o
the
r c
ou
ntr
ies
wh
ere
ta
riff
s w
ith
Ch
ina
ma
y s
till
rem
ain
in p
lac
e.
It is
ess
en
tia
l th
at
bu
sin
ess
es
un
de
rsta
nd
ho
w t
he
ir a
rea
of
exp
ert
ise
is a
ffe
cte
d w
he
n t
he
Ch
AF
TA e
nte
rs in
to f
orc
e
in la
te 2
01
5. M
ore
de
taile
d in
form
ati
on
will
be
re
lea
sed
by
the
DFA
T in
Ap
ril,
bu
t b
usi
ne
sse
s sh
ou
ld b
e p
lan
nin
g n
ow
.
PL
AY
ING
IN
NIC
HE
S C
AN
BE
A M
AJO
R A
DV
AN
TAG
E
19
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 6
: TH
E C
HA
FTA
IN
DU
ST
RY
OP
PO
RT
UN
ITY
HE
AT
MA
P
So
urc
e: D
FAT,
AN
Z
Ind
ust
ryE
xp
ort
Le
ve
l*T
ari
ff R
ed
uc
tio
nA
U R
ela
tiv
e
Str
en
gth
Ch
AF
TA
Op
po
rtu
nit
yA
NZ
Co
mm
en
t
Ag
ricu
ltu
re
Be
ef
Me
diu
m0
% w
ith
in 9
ye
ars
fro
m 1
2-2
5%
Hig
hH
igh
Att
rac
tive
dyn
am
ics
an
d m
ate
ria
l ta
riff
re
du
cti
on
s
sho
uld
be
a t
ailw
ind
Sh
ee
pm
ea
tM
ed
ium
0%
wit
hin
8 y
ea
rs f
rom
12
-23
%H
igh
Hig
hTa
riff
re
du
ctio
ns
and
a lo
we
r A
UD
sh
ou
ld f
avo
ur
the
Au
stra
lian
pre
miu
m w
ine
se
gm
en
t e
spe
cial
ly
Da
iry
Me
diu
m0
% w
ith
in 4
-11
ye
ars
fro
m 1
0-1
9%
Hig
hH
igh
Ch
ina
is a
lre
ad
y A
ust
ralia
's e
xpo
rt m
ark
et
by
a f
ac
tor
of
fou
r
Win
eM
ed
ium
0%
wit
hin
4 y
ea
rs f
rom
14
-20
%H
igh
Hig
hA
sm
all
bu
t p
rote
cte
d e
xpo
rt m
ark
et
cou
ld p
rov
ide
a g
row
th o
pp
ort
un
ity
for
som
e A
ust
ralia
n p
rod
uce
rs
Hid
es,
skin
s &
lea
the
r
Me
diu
m0
% w
ith
in 9
ye
ars
fro
m 1
2-2
5%
Hig
hH
igh
A v
ery
sm
all e
xpo
rt m
arke
t to
Ch
ina
bu
t o
ne
th
at s
ho
uld
con
tin
ue
to
gro
w
Ho
ricu
ltu
reLo
w0
% w
ith
in 4
-8 y
ea
rs f
rom
10
-30
%M
ed
ium
Me
diu
mA
hig
h q
ua
lity/
in d
em
an
d p
rod
uc
t w
ill d
rive
de
ma
nd
.
Th
e 3
% t
ari
ff e
limin
ati
on
on
ba
rle
y a
nd
2%
on
so
rgh
um
are
imm
ate
ria
l
Se
afo
od
Low
0%
wit
hin
4 y
ea
rs f
rom
8-1
5%
Me
diu
mM
ed
ium
De
man
d w
ill in
cre
ase
in li
ne
wit
h a
Ch
ine
se d
om
est
ic
mar
ket
that
val
ue
s th
e q
ual
ity
of A
ust
ralia
's c
attl
e fo
r
pro
du
ctio
n p
urp
ose
s
Ba
rle
y
(an
d o
the
r g
rain
s)
Me
diu
m0
% w
ith
in 0
-4 y
ea
rs f
rom
2-1
5%
Hig
hM
ed
ium
Ch
ina
is a
hig
h c
on
sum
er
of
po
rk, h
ow
eve
r, d
om
est
ic
pro
du
cti
on
co
vers
th
e m
ajo
rity
of
de
ma
nd
Live
an
ima
l exp
ort
sLo
w0
% w
ith
in 4
ye
ars
Hig
hH
igh
De
ma
nd
will
incr
ea
se in
lin
e w
ith
a C
hin
ese
do
me
stic
ma
rke
t th
at
va
lue
s th
e q
ua
lity
of
Au
stra
lia’s
ca
ttle
fo
r
pro
du
cti
on
pu
rpo
ses
Po
rkLo
w0
% w
ith
in 4
ye
ars
Low
Low
Ch
ina
is a
hig
h c
on
sum
er
of
po
rk, h
ow
eve
r, d
om
est
ic
pro
du
cti
on
co
vers
th
e m
ajo
rity
of
de
ma
nd
Re
sou
rce
s
Co
kin
g c
oa
lV
ery
hig
h0
% im
me
dia
tely
fro
m 3
%H
igh
Low
The
sm
all c
han
ge
in t
ariff
is u
nlik
ely
to
infl
ue
nce
de
man
d
No
n-c
oki
ng
co
al
Ve
ry h
igh
0%
wit
hin
2 y
ea
rs f
rom
6%
Hig
hLo
wTh
e s
mal
l ch
ang
e in
tar
iff is
un
like
ly t
o in
flu
en
ce d
em
and
Co
pp
er
(allo
y/re
fin
ed
)
Ve
ry h
igh
0%
imm
ed
iate
ly f
rom
1-2
%H
igh
Low
The
sm
all c
han
ge
in t
ariff
is u
nlik
ely
to
infl
ue
nce
de
man
d
Alu
min
aH
igh
0%
imm
ed
iate
ly f
rom
8%
Hig
hLo
wTh
e s
mal
l ch
ang
e in
tar
iff is
un
like
ly t
o in
flu
en
ce d
em
and
Nic
kel
Me
diu
m0
% im
me
dia
tely
fro
m 3
%M
ed
ium
Low
The
sm
all c
han
ge
in t
ariff
is u
nlik
ely
to
infl
ue
nce
de
man
d
Zin
cM
ed
ium
0%
imm
ed
iate
ly f
rom
3%
Me
diu
mLo
wTh
e s
mal
l ch
ang
e in
tar
iff is
un
like
ly t
o in
flu
en
ce d
em
and
Co
pp
er
(wa
ste
/scr
ap
)
Me
diu
m0
% im
me
dia
tely
fro
m 1
.5%
Low
Low
The
sm
all c
han
ge
in t
ariff
is u
nlik
ely
to
infl
ue
nce
de
man
d
*Ex
po
rt L
ev
el
V
ery
hig
h >
AU
D$3
b
Hig
h A
UD
$1b
-AU
D$3
b
Me
diu
m A
UD
$200
m-A
UD
$1b
L
ow
<A
UD
$200
m
Ind
ust
ryE
xp
ort
Le
ve
l*T
ari
ff R
ed
uc
tio
nA
U R
ela
tiv
e
Str
en
gth
Ch
AF
TA
Op
po
rtu
nit
yA
NZ
Co
mm
en
t
Ma
nu
fac
turi
ng
Ph
arm
ace
uti
cal/
Vit
am
ins
Me
diu
m0
% w
ith
in 4
ye
ars
fro
m 3
-10
%
Me
diu
mM
ed
ium
Ch
ina
is A
ust
ralia
's la
rge
st e
xpo
rt m
ark
et
bu
t m
an
ufa
ctu
rin
g c
ap
aci
ty h
as
de
clin
ed
.
Vit
am
in e
xpo
rts
rem
ain
an
op
po
rtu
nit
y
Pro
cess
ed
fo
od
0%
wit
hin
4-5
ye
ars
fro
m 7
.5-3
0%
Me
diu
mM
ed
ium
No
t a
ma
jor
exp
ort
ma
rke
t, h
ow
eve
r a
low
er
AU
D
an
d s
om
e f
air
ly s
ign
ifica
nt
tari
ff r
ed
uc
tio
ns
cou
ld
pro
vid
e o
pp
ort
un
itie
s
Ca
r e
ng
ine
sLo
w0
% w
ith
in 4
ye
ars
fro
m 1
0%
Low
Low
Do
me
stic
ma
nu
fac
ture
rs a
re e
xiti
ng
th
e in
du
stry
.
Ou
r ca
pa
bili
ty w
as
hig
h b
ut
ou
r ca
pa
city
will
be
low
Oth
er
man
ufa
ctu
red
pro
du
cts
Low
0%
in 0
-4 y
ea
rs
fro
m 3
-15
%
Low
Low
Nic
he
pro
vid
ers
may
pro
spe
r b
ut
the
ag
gre
ga
te
op
po
rtu
nit
y re
ma
ins
low
Se
rvic
es
Leg
al
Low
Gu
ara
nte
ed
acc
ess
in t
he
SF
TZ
Me
diu
mM
ed
ium
Imp
rove
d a
cce
ss a
nd
co
vera
ge
will
be
ne
fit
tie
r 1
an
d p
oss
ibly
tie
r 2
firm
s th
at
hav
e t
he
ca
pa
bili
ty
to p
art
icip
ate
in t
he
Ch
ine
se m
ark
et
Ed
uca
tio
nV
ery
Hig
hIm
pro
ved
vis
ibili
ty
an
d b
ett
er
acc
ess
HIg
hM
ed
ium
The
Ch
ine
se e
xpo
rt m
arke
t is
wo
rth
mo
re t
han
AU
D$
4
bill
ion
, sig
nify
ing
th
e s
tro
ng
ap
pe
al fo
r C
hin
ese
stu
de
nts
.
Be
tte
r ac
cess
/vis
ibili
ty s
ho
uld
pro
vid
e fu
rth
er
gro
wth
Tele
com
mu
nic
atio
ns
Un
kno
wn
Imp
rove
d f
ore
ign
eq
uit
y lim
its
Hig
hM
ed
ium
Po
ten
tia
lly a
n a
ttra
cti
ve m
ark
et
for
the
rig
ht
bu
sin
ess
Tou
rism
Low
Acc
ess
fro
wh
olly
ow
ne
d
AU
co
mp
an
ies
Me
diu
mH
igh
A la
rge
an
d g
row
ing
se
gm
en
t b
ut
do
me
stic
com
pe
titi
on
is h
igh
Ag
ed
ca
reU
nkn
ow
nG
ree
n/b
row
nfi
eld
fo
r
wh
olly
ow
ne
d h
osp
ita
ls
& a
ge
d c
are
pro
vid
ers
Hig
hH
igh
Ve
ry f
avo
ura
ble
ma
cro
/de
mo
gra
ph
ic c
on
dit
ion
s
bu
t lo
cal m
ark
et
kno
wle
dg
e w
ill a
dd
co
mp
lexi
ty
for
Au
stra
lian
op
era
tors
Oth
er
serv
ice
sU
nkn
ow
nIn
cre
ase
d m
ark
et
acc
ess
& e
qu
ity
ow
ne
rsh
ip li
mit
s
Me
diu
mM
ed
ium
Po
ten
tia
lly v
ery
att
rac
tive
acr
oss
a r
an
ge
of
ind
ust
rie
s
for
bu
sin
ess
es
of
all
size
s
Fin
an
cia
l S
erv
ice
s
Insu
ran
ceLo
wA
cce
ss t
o c
om
pu
lso
ry 3
rd p
art
y
liab
ility
mo
tor
veh
icle
insu
ran
ce
Me
diu
mH
igh
Ve
ry lo
w fo
reig
n in
sure
r p
en
etr
atio
n; o
pp
ort
un
ity
to le
vera
ge
te
chn
ical
exp
ert
ise
Ba
nki
ng
Me
diu
mR
ed
uce
d w
ait
ing
pe
rio
d
an
d s
tre
am
line
d b
ran
ch
acc
ess
ap
plic
ati
on
s
Me
diu
mM
ed
ium
An
att
rac
tive
op
po
rtu
nit
y fo
r th
e 4
-5 m
ajo
r
Au
stra
lian
ba
nks
Fun
ds
ma
na
ge
me
nt
Low
Gra
nte
d R
MB
qu
ota
un
de
r R
MB
QF
II p
rog
ram
Me
diu
mH
igh
Op
en
ing
fo
r so
urc
ing
RM
B f
un
ds
to in
vest
in o
nsh
ore
RM
B s
ecu
riti
es
BE
NE
FIT
S A
ND
OP
PO
RT
UN
ITIE
S W
ILL
VA
RY
BY
IN
DU
ST
RY
SE
CT
OR
Th
e o
pp
ort
un
ity
he
atm
ap
co
vers
inte
rim
info
rma
tio
n r
ele
ase
d b
y D
FAT
in N
ove
mb
er
20
14
. Fu
rth
er
go
vern
me
nt
info
rma
tio
n s
et
to b
e r
ele
ase
d in
Ap
ril 2
01
5.
21
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
ChA
FTA
indu
stry
sp
otlig
ht
Th
e f
ull
Ch
AF
TA t
ext
will
pro
vid
e c
lari
ty a
t th
e p
rod
uc
t
leve
l, b
ut
the
ma
jor
op
po
rtu
nit
ies
fro
m t
he
Ch
AF
TA a
re n
ot
just
ba
sed
on
ta
riff
ch
an
ge
s b
ut
als
o d
em
an
d a
nd
su
pp
ly
fun
da
me
nta
ls, A
ust
ralia
’ re
lati
ve s
tre
ng
th in
a p
art
icu
lar
ind
ust
ry, h
isto
rica
l tra
din
g r
ela
tio
nsh
ips
an
d c
ha
ng
es
wit
h
resp
ec
t to
co
mp
eti
ng
co
un
trie
s to
Au
stra
lia f
or
the
Ch
ine
se
imp
ort
do
llar.
Wh
ile t
he
Ch
AF
TA is
re
lev
an
t fo
r e
very
ind
ust
ry,
we
pro
vid
e a
sp
otl
igh
t o
n a
fe
w o
f th
e m
ost
imp
ort
an
t.
SP
OT
LIG
HT
ON
AG
RIC
ULT
UR
E
Th
e s
ign
ing
of
the
Ch
AF
TA in
No
vem
be
r 2
01
4 w
as
gre
ete
d
wit
h s
tro
ng
en
thu
sia
sm b
y th
e A
ust
ralia
n a
gri
cult
ura
l
sec
tor.
Ch
ina’
s im
po
rts
of
foo
d a
nd
ag
ricu
ltu
ral p
rod
uc
ts
hav
e c
on
tin
ue
d t
o in
cre
ase
ove
r th
e p
ast
de
cad
e, d
rive
n
by
po
pu
lati
on
gro
wth
, ris
ing
inco
me
s, u
rba
nis
ati
on
, an
d a
tre
nd
to
wa
rd W
est
ern
die
ts. W
hile
do
me
stic
fo
od
pro
du
cti
on
ha
s co
nti
nu
ed
to
gro
w, d
rive
n b
y a
gri
cult
ura
l str
ate
gie
s
as
pa
rt o
f th
e F
ive
Ye
ar
Pla
ns,
Ch
ina’
s im
po
rt f
oo
d
de
pe
nd
en
ce h
as
do
ub
led
to
alm
ost
13
% s
ince
20
01
.
Pa
rtic
ula
rly
ove
r th
e p
ast
de
cad
e, t
he
Au
stra
lian
ag
ricu
ltu
re
sec
tor
ha
s in
ma
ny
way
s fe
lt h
an
dic
ap
pe
d b
y th
e la
ck o
f a
FTA
, in
co
mp
ari
son
to
th
eir
co
mp
eti
tors
fro
m N
ew
Ze
ala
nd
,
wh
ose
FTA
wit
h C
hin
a w
as
fin
alis
ed
in 2
00
8. W
ith
th
e g
rad
ua
l
elim
ina
tio
n o
f ta
riff
s u
nd
er
the
FTA
, th
e A
ust
ralia
n a
gri
cult
ure
sec
tor
will
en
joy
eq
ua
l fo
oti
ng
wit
h N
ew
Ze
ala
nd
.
Pri
ma
rily
, th
e im
pa
ct
of
the
imp
lem
en
tati
on
of
the
Ch
AF
TA
on
Au
stra
lian
ag
ricu
ltu
ral e
xpo
rts
will
be
incr
ea
sed
pri
ce
com
pe
titi
ven
ess
wit
h t
he
ir c
om
pe
tito
rs. I
n a
dd
itio
n,
a s
che
du
led
re
vie
w o
f th
e C
hA
FTA
’s o
utc
om
es
aft
er
thre
e
yea
rs m
ay a
llow
fo
r fu
rth
er
libe
ralis
ati
on
of
ma
rke
t a
cce
ss.
Th
e fl
ow
-on
imp
lica
tio
ns
fro
m t
he
Ch
AF
TA c
lea
rly
go
be
yon
d
pri
ce c
om
pe
titi
ven
ess
. Th
e e
nh
an
ced
att
rac
tive
ne
ss o
f
Au
stra
lian
ag
ricu
ltu
ral p
rod
uc
ts, c
om
bin
ed
wit
h t
he
lim
ite
d
rate
of
ag
ricu
ltu
ral p
rod
uc
tio
n g
lob
ally
, is
like
ly t
o s
ee
incr
ea
sed
inve
stm
en
t in
pro
du
cti
on
ass
ets
, as
pro
cess
ors
,
tra
de
rs a
nd
dis
trib
uto
rs s
ee
k to
tie
up
su
pp
ly, a
nd
inve
sto
rs
see
k to
ga
in a
re
turn
on
fo
reca
st s
tro
ng
co
nsu
mp
tio
n g
row
th.
Imp
ort
an
tly,
fo
r A
ust
ralia
, wh
ile a
gre
at
de
al o
f th
e d
em
an
d
pre
dic
tio
ns
are
ba
sed
on
Ch
ina
, th
e c
ap
ita
l in
flo
ws
to t
he
sec
tor
see
kin
g t
o t
ake
ad
va
nta
ge
of
this
are
glo
ba
l.
Acr
oss
th
e s
up
ply
ch
ain
th
e im
pro
ved
ma
rgin
s o
f e
ffici
en
t
op
era
tors
wh
o a
re a
ble
to
ta
ke a
dv
an
tag
e o
f th
e C
hA
FTA
be
ne
fits
are
like
ly t
o le
ad
to
incr
ea
sed
ind
ust
ry c
on
solid
ati
on
,
as
bu
sin
ess
es
see
k sc
ale
effi
cie
nci
es.
Ho
we
ver,
wh
ile t
ari
ff r
ed
uc
tio
ns
an
d m
ark
et
acc
ess
are
imp
ort
an
t, t
he
y fo
rm o
nly
on
e o
f th
e f
ac
tors
wh
ich
will
de
term
ine
ma
rke
t sh
are
fo
r co
mp
eti
ng
ag
ricu
ltu
ral e
xpo
rte
rs
to C
hin
a. T
he
issu
e o
f fo
od
sa
fety
, an
d it
s im
pa
ct
on
th
e f
oo
d
bu
yin
g c
ho
ice
s o
f th
e C
hin
ese
pu
blic
, co
nti
nu
es
to a
ttra
ct
mu
ch c
ove
rag
e a
nd
de
ba
te.
Diff
ere
nt
Au
stra
lian
ag
ricu
ltu
ral s
ec
tors
hav
e c
on
tin
ue
d t
o
em
ph
asi
se t
he
fo
od
sa
fety
me
rits
of
Au
stra
lia’s
pro
du
ce, i
n
con
tra
st t
o g
lob
al c
om
pe
tito
rs. T
his
va
rie
s b
y se
cto
r –
fo
r b
ee
f,
the
ab
sen
ce o
f FM
D (
Foo
t a
nd
Mo
uth
Dis
ea
se)
or
BS
E (
Bo
vin
e
Sp
on
gif
orm
En
cep
ha
lop
ath
y o
r “M
ad
Co
w D
ise
ase
”) h
as
pro
vid
ed
Au
stra
lia w
ith
a c
lea
r e
dg
e o
ver
glo
ba
l co
mp
eti
tors
such
as
the
US
an
d t
he
EU
. Fo
r o
the
r se
cto
rs, t
he
fo
od
sa
fety
con
cern
s d
riv
ing
Ch
ine
se c
on
sum
ers
to
loo
k to
wa
rd im
po
rte
d
pro
du
cts
are
dri
ven
by
do
me
stic
inci
de
nts
su
ch a
s th
e 2
00
8
Ch
ine
se m
ilk s
can
da
l, w
he
re m
ilk t
ain
ted
wit
h m
ela
min
e,
led
to
th
e d
ea
ths
of
six
ba
bie
s a
nd
th
e h
osp
ita
lisa
tio
n o
f o
ver
50
,00
0 o
the
rs. A
rgu
ab
ly f
oo
d s
afe
ty r
em
ain
s a
ma
jor
dri
ver
in C
hin
a’s
da
iry
con
sum
er
ha
bit
s se
ven
ye
ars
on
.
AU
ST
RA
LIA
N A
GR
ICU
LTU
RE
WIL
L B
E A
MA
JOR
WIN
NE
R F
RO
M T
HE
CH
AF
TA
23
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E H
IGH
CH
INE
SE
DE
MA
ND
FO
R I
MP
OR
TE
D
DA
IRY
PR
OD
UC
TS
IS
LIK
ELY
TO
BE
MA
INTA
INE
D
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 7
: AU
STR
ALI
AN
DA
IRY
EX
PO
RT
DES
TIN
ATI
ON
S B
Y V
OLU
ME
(20
14
, 73
0,9
04
to
nn
es)
So
urc
e: D
air
y A
ust
rali
a, F
AP
RI &
AN
Z A
na
lysi
s
FIG
UR
E 8
: AU
ST
RA
LIA
N D
AIR
Y E
XP
OR
T D
ES
TIN
AT
ION
S B
Y V
ALU
E
(20
14
, AU
D 3
,21
1 m
illi
on
)
So
urc
e: D
air
y A
ust
rali
a, F
AP
RI &
AN
Z A
na
lysi
s
FIG
UR
E 9
: AU
ST
RA
LIA
N D
AIR
Y E
XP
OR
TS
BY
RE
GIO
N (
20
14
)
So
urc
e: D
air
y A
ust
rali
a, F
AP
RI &
AN
Z A
na
lysi
s
Gre
ater
Chi
na 1
9%
Japa
n 12
%
Sing
apor
e 11
%
Mal
aysi
a 7%
Indo
nesi
a 7%
Thai
land
6%
Phili
ppin
es 5
%
New
Ze a
land
4%
UA
E 3%
Taiw
an 3
%
Oth
ers
23%
Gre
ater
Chi
na 1
9%
Japa
n 13
%
Sing
apor
e 9%
Mal
aysi
a 7%
Indo
nesi
a 7%
Thai
land
6%
New
Ze a
land
4%
UA
E 4%
Phili
ppin
es 3
%
Russ
ian
Fed.
3%
Oth
ers
25%
Sout
h-Ea
st A
sia
33%
Oth
er A
sia
24%
Gre
ater
Chi
na 1
8%
Mid
dle
East
11%
Am
eric
as 2
%
Euro
pe 5
%
Afr
ica
2%
Oth
er 5
%
SP
OT
LIG
HT
ON
DA
IRY
Wh
ile A
ust
ralia
acc
ou
nts
fo
r a
n e
stim
ate
d 2
% o
f th
e w
orl
d’s
milk
pro
du
cti
on
, it
is a
sig
nifi
can
t e
xpo
rte
r o
f d
air
y p
rod
uc
ts.
Au
stra
lia r
an
ks f
ou
rth
in t
erm
s o
f w
orl
d d
air
y tr
ad
e—
wit
h
7%
sh
are
—b
eh
ind
Ne
w Z
ea
lan
d a
nd
th
e E
uro
pe
an
Un
ion
as
a b
loc
an
d t
he
Un
ite
d S
tate
s. O
ver
rece
nt
yea
rs, A
ust
ralia
ha
s e
xpo
rte
d a
rou
nd
40
% o
f it
s m
ilk p
rod
uc
tio
n -
th
e
low
est
pro
po
rtio
n s
ince
th
e m
id-1
99
0s,
du
e t
o t
he
re
du
ced
ava
ilab
ility
of
pro
du
ct
fro
m a
de
clin
ing
milk
pro
du
cti
on
ba
se.
Gre
ate
r C
hin
a (
incl
ud
ing
Ch
ina
, Ho
ng
Ko
ng
an
d M
aca
u)
is n
ow
th
e s
ing
le m
ost
imp
ort
an
t e
xpo
rt m
ark
et
for
Au
stra
lia, a
cco
un
tin
g f
or
19
% o
f e
xpo
rts
by
bo
th v
olu
me
an
d v
alu
e. A
ust
ralia
n e
xpo
rts
are
co
nce
ntr
ate
d in
Asi
a,
wh
ich
re
pre
sen
ted
75
% o
f th
e t
ota
l da
iry
exp
ort
va
lue
of
AU
D3
.21
bill
ion
in F
Y2
01
4. A
ust
ralia
n d
air
y co
mp
an
ies
hav
e
be
en
su
pp
lyin
g t
he
se m
ark
ets
ove
r a
nu
mb
er
of
de
cad
es.
Th
is c
on
cen
trat
ion
of
exp
ort
s in
Asi
a re
fle
cts
bo
th A
ust
ralia
’s
ge
og
rap
hic
pro
xim
ity
to t
he
se m
arke
ts a
nd
th
e e
xte
nt
to
wh
ich
Au
stra
lia is
exc
lud
ed
fro
m o
the
r m
ajo
r m
arke
ts b
y
dir
ect
re
stri
ctio
ns
(as
in t
he
cas
e o
f th
e E
U o
r th
e im
pac
t
of
the
exp
ort
su
bsi
dy
pro
gra
ms
of
maj
or
com
pe
tito
r co
un
trie
s).
Asi
an m
arke
ts h
ave
co
nsi
de
rab
le p
ote
nti
al fo
r co
nsu
mp
tio
n
gro
wth
as
inco
me
s ri
se a
nd
die
ts b
eco
me
mo
re “w
est
ern
ise
d”.
Th
e f
aste
st g
row
ing
exp
ort
mar
ket
for
Au
stra
lia in
th
e la
st fi
ve
year
s h
as b
ee
n G
reat
er
Ch
ina.
In t
he
op
po
site
dir
ec
tio
n, A
ust
ralia
is a
re
lati
vely
sm
all
pla
yer,
ma
kin
g u
p a
rou
nd
3%
of
Ch
ina’
s m
ilk p
ow
de
r im
po
rts
an
d
aro
un
d 1
1%
of
Ch
ina’
s liq
uid
milk
imp
ort
s.
Wit
hin
Ch
ina
, lo
cal p
rod
uc
tio
n is
ad
just
ing
to
tig
hte
r
reg
ula
tio
ns
imp
lem
en
ted
in t
he
wa
ke o
f th
e m
ela
min
e
con
tam
ina
tio
n a
nd
is b
eco
min
g m
ore
co
nce
ntr
ate
d.
Th
e h
igh
de
ma
nd
fo
r im
po
rte
d d
air
y p
rod
uc
ts is
like
ly t
o
be
ma
inta
ine
d in
th
e f
ore
see
ab
le f
utu
re w
ith
sig
nifi
can
t
gro
wth
exp
ec
ted
fo
r im
po
rte
d r
eta
il p
rod
uc
ts in
clu
din
g
infa
nt
form
ula
, UH
T m
ilk, c
he
ese
, pas
teu
rize
d m
ilk a
nd
yo
gu
rt,
wit
h t
he
use
of
ing
red
ien
ts li
ke S
MP,
WM
P a
nd
wh
ey
po
wd
er.
Po
wd
ers
co
nst
itu
te 7
0%
of t
he
mar
ket
by
volu
me
, 82
% b
y va
lue
.
25
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 1
0: P
RIC
ING
IN
EX
PO
RT
MA
RK
ET
S (
AU
D/C
AS
E)
So
urc
e: M
org
an
Sta
nle
y: G
lob
al W
ine
Ind
ust
ry R
epo
rt O
cto
ber
20
13
SP
OT
LIG
HT
ON
WIN
E
Th
e C
hA
FTA
co
me
s a
t a
n im
po
rta
nt
tim
e f
or
the
Au
stra
lian
win
e s
ec
tor.
In t
erm
s o
f w
ine
pro
du
cers
, th
e A
ust
ralia
n
ind
ust
ry h
as
con
tin
ue
d t
o g
row
to
aro
un
d 2
,57
2 in
20
13
.
Th
is is
larg
ely
ma
de
up
of
bo
uti
qu
e w
ine
rie
s, p
rod
uci
ng
less
tha
n 1
00
to
nn
es.
Inte
rest
ing
ly, t
his
pla
ces
the
Au
stra
lian
win
e
sec
tor
in c
on
tra
st t
o a
lmo
st e
very
oth
er
ag
ricu
ltu
re s
ec
tor,
wh
en
ove
rall
nu
mb
ers
co
nti
nu
e t
o d
ecl
ine
, on
th
e b
ack
of
ind
ust
ry c
on
solid
ati
on
.
Th
e A
ust
ralia
n w
ine
ind
ust
ry h
as
be
en
incr
ea
sin
gly
exp
ort
ori
en
ted
ove
r th
e p
ast
tw
en
ty y
ea
rs, w
ith
exp
ort
s ri
sin
g f
rom
55
% o
f to
tal v
olu
me
in 1
99
1 t
o 7
3%
in 2
01
3. I
n r
ece
nt
yea
rs,
the
ind
ust
ry h
ad
be
en
imp
ac
ted
by
the
hig
h A
UD
, as
we
ll a
s
stro
ng
co
mp
eti
tio
n in
th
e lo
we
r e
nd
of
the
win
e m
ark
et
fro
m
com
pe
tito
rs in
ne
w r
eg
ion
s su
ch a
s C
hile
an
d S
ou
th A
fric
a.
At
ho
me
, th
e in
du
stry
ha
d a
lso
be
en
ch
alle
ng
ed
by
the
ma
rke
t p
ow
er
of
the
tw
o m
ajo
r re
taile
rs, a
s th
ey
con
tin
ue
d
to lo
we
r m
arg
ins
wh
ile in
tro
du
cin
g t
he
ir o
wn
pri
va
te la
be
ls.
Do
me
stic
co
nsu
mp
tio
n g
row
th h
as
als
o b
ee
n s
lug
gis
h,
furt
he
r h
it b
y a
n in
cre
ase
in im
po
rte
d w
ine
.
As
an
exp
ort
ma
rke
t fo
r A
ust
ralia
n w
ine
, Ch
ina
ha
s co
nti
nu
ed
to in
cre
ase
in im
po
rta
nce
, ris
ing
fro
m t
he
fift
h la
rge
st m
ark
et
in 2
00
8 t
o t
hir
d in
20
13
. Th
e g
row
th h
as
be
en
dri
ven
by
ove
rall
volu
me
incr
ea
ses
an
d h
igh
er
pri
ce m
ix o
f e
xpo
rts.
Ch
ine
se w
ine
imp
ort
s fr
om
Au
stra
lia a
re a
lmo
st e
nti
rely
fro
m t
he
bo
ttle
d s
ec
tor
(85
%)
rath
er
tha
n b
ulk
, a r
ati
o
wh
ich
is a
lmo
st a
dir
ec
t co
ntr
ast
fro
m t
ha
t o
f A
ust
ralia
n
exp
ort
s to
th
e U
K.
Au
stra
lian
win
e p
rod
uce
rs h
ave
co
nti
nu
ed
to
pu
rsu
e
op
po
rtu
nit
ies
in C
hin
a, w
hile
mo
vin
g a
way
fro
m o
the
r
tra
dit
ion
al m
ark
ets
. In
te
rms
of
pri
cin
g p
er
case
, Au
stra
lia’s
top
six
ma
rke
ts a
re in
Asi
a, a
nd
wh
ile C
hin
a f
alls
be
hin
d
Ma
lays
ia, S
ing
ap
ore
, Ho
ng
Ko
ng
an
d T
ha
ilan
d, i
ts s
he
er
curr
en
t a
nd
fo
reca
st e
xpo
rt v
olu
me
s a
dd
to
its
allu
re.
Th
e a
ttra
cti
ven
ess
of
the
Ch
ine
se m
ark
et
lies
pa
rtic
ula
rly
in
the
vo
lum
es
of
hig
h p
rice
d w
ine
s. In
th
e t
op
pri
ce s
eg
me
nt
for
Au
stra
lian
win
e im
po
rts,
ab
ove
AU
D1
0, C
hin
a s
aw g
row
th
of
25
% in
20
13
, an
d n
ow
ho
lds
aro
un
d 3
1%
of
tha
t se
gm
en
t.
Co
mb
ine
d w
ith
Ho
ng
Ko
ng
, th
e t
wo
ho
ld a
lmo
st 4
3%
.
In C
hin
a, r
ed
bo
ttle
d w
ine
do
min
ate
s o
ver
oth
er
va
rie
tals
,
dri
ven
by
cult
ura
l pre
fere
nce
s. R
ed
win
e is
co
nsi
de
red
to
be
“lu
cky
”, d
ue
to
th
e c
on
no
tati
on
of “
go
od
fo
rtu
ne
”, a
sso
cia
ted
wit
h t
he
co
lou
r re
d. I
n a
dd
itio
n, w
ine
is p
erc
eiv
ed
to
be
soci
ally
an
d c
ult
ura
lly s
op
his
tica
ted
. In
ad
dit
ion
to
pro
mo
tin
g
go
od
fo
rtu
ne
, re
d w
ine
is a
lso
se
en
as
be
ing
go
od
fo
r h
ea
lth
.
Ch
ina’
s co
nsu
mp
tio
n o
f w
ine
ha
s co
nti
nu
ed
to
be
dri
ven
by
risi
ng
ho
use
ho
ld in
com
es,
wit
h in
cre
asi
ng
ly a
fflu
en
t
con
sum
ers
sh
ifti
ng
to
win
e f
rom
be
er
or
spir
its
as
the
ir
alc
oh
ol o
f p
refe
ren
ce.
Mo
re r
ece
ntl
y, t
he
asc
en
sio
n o
f X
i Jin
pin
g t
o t
he
Ch
ine
se
Pre
sid
en
cy,
an
d h
is c
rack
do
wn
on
gif
t-g
ivin
g a
nd
en
tert
ain
me
nt,
in a
bid
to
re
du
ce c
orr
up
tio
n, h
ad a
n in
itia
l
imp
act
on
th
e e
xpo
rt o
f A
ust
ralia
n w
ine
s to
Ch
ina,
de
clin
ing
in 2
01
3, b
efo
re r
isin
g 8
% in
20
14
to
hit
40
mill
ion
litr
es,
valu
ed
at
AU
D2
24
mill
ion
.
$
Malaysia
Singapore
Hong Kong
Thailand
China
Japan
Finland
UAE
Canada
Ireland
0
10
20
30
40
50
60
70
80
90
100
The
dair
y de
al
It w
as
for
no
sm
all
rea
son
th
at
Au
stra
lian
Tra
de
Min
iste
r
An
dre
w R
ob
b d
esc
rib
ed
th
e F
TA a
s “t
he
da
iry
de
al”.
Th
rou
gh
ou
t th
e n
eg
oti
ati
on
pe
rio
d, t
he
Au
stra
lian
da
iry
sec
tor
wa
s a
da
ma
nt
tha
t th
e d
air
y o
utc
om
es
ne
ed
ed
to b
e e
qu
al t
o o
r b
ett
er
tha
n t
ho
se r
ece
ive
d b
y N
ew
Ze
ala
nd
un
de
r th
eir
20
08
FTA
wit
h C
hin
a. I
n t
he
pe
rio
d s
ince
th
at
FTA
,
NZ
da
iry
exp
ort
s to
Ch
ina
hav
e r
ise
n f
rom
AU
D5
00
mill
ion
to A
UD
3 b
illio
n a
nn
ua
lly.
Un
de
r th
e F
TA, t
he
10
% t
o 2
0%
ta
riff
s w
hic
h c
urr
en
tly
ap
ply
to t
he
da
iry
sec
tor
will
be
ph
ase
d o
ut
ove
r te
n y
ea
rs, w
hile
th
e
15
% t
ari
ff o
n in
fan
t fo
rmu
la w
ill b
e p
ha
sed
ou
t o
ver
fou
r ye
ars
.
On
e f
ac
tor
wh
ich
fu
rth
er
ass
ists
th
e A
ust
ralia
n d
air
y se
cto
r is
the
lack
of
pro
tec
tive
sa
feg
ua
rds
wh
ich
cu
rre
ntl
y a
pp
ly t
o t
he
Ne
w Z
ea
lan
d’s
da
iry
exp
ort
s to
Ch
ina
. Un
de
r th
e N
ew
Ze
ala
nd
FTA
, ta
riff
s a
re a
pp
lied
on
ce a
qu
ota
is r
ea
che
d, t
ho
ug
h u
nd
er
the
Au
stra
lian
ag
ree
me
nt,
th
ese
sa
feg
ua
rds
on
ly a
pp
ly t
o
wh
ole
milk
po
wd
er.
Th
e s
ign
ing
of
the
FTA
is li
kely
to
se
e a
n u
ptu
rn in
co
mp
lete
d
tra
nsa
cti
on
s b
y C
hin
ese
inve
sto
rs in
th
e A
ust
ralia
n d
air
y
sup
ply
ch
ain
, bo
th a
t th
e p
rod
uc
tio
n a
nd
pro
cess
ing
sta
ge
s.
Un
til n
ow
, wh
ile C
hin
ese
inve
sto
r in
tere
st in
th
e s
ec
tor
ha
s
be
en
wid
ely
dis
cuss
ed
an
d s
pe
cula
ted
up
on
– r
um
ou
rs o
f
op
tio
ns
on
a la
rge
nu
mb
er
of
ma
jor
da
iry
farm
s a
bo
un
d –
the
re h
ave
be
en
re
lati
vely
fe
w a
ctu
al t
ran
sac
tio
ns,
wit
h t
he
ma
jor
acq
uis
itio
ns
com
ing
mo
re f
rom
Eu
rop
ea
n, J
ap
an
ese
an
d C
an
ad
ian
pla
yers
su
ch a
s P
arm
ala
t, K
irin
an
d S
ap
uto
.
Wa
ry o
f a
re
pe
at
of
the
fo
od
sa
fety
issu
es
wh
ich
hav
e r
ock
ed
the
Ch
ine
se d
air
y se
cto
r in
th
e p
ast
, Ch
ine
se c
om
pa
nie
s
will
be
ke
en
to
se
cure
alt
ern
ati
ve s
ou
rce
s o
f su
pp
ly in
Au
stra
lia, i
nve
stin
g in
da
iry
farm
s a
nd
da
iry
pro
cess
ing
.
At
the
sa
me
tim
e, o
the
r m
ajo
r g
lob
al i
nve
sto
rs a
re a
lso
exp
lori
ng
op
po
rtu
nit
ies
in t
he
Au
stra
lian
da
iry
pro
du
cti
on
sec
tor,
kee
n t
o t
ake
ad
va
nta
ge
of
the
op
po
rtu
nit
ies
off
ere
d
by
the
Ch
ine
se m
ark
et
an
d e
nh
an
ced
by
the
FTA
. Wit
h li
mit
ed
are
as
in A
ust
ralia
su
ita
ble
fo
r in
ten
sive
da
iry
farm
ing
, th
is w
ill
pla
ce p
ote
nti
al i
nve
sto
rs in
co
mp
eti
tio
n w
ith
th
e e
sta
blis
he
d
da
iry
pro
cess
ors
, fo
r w
ho
m it
is v
ita
l to
se
cure
su
pp
ly
con
tra
cts
. Th
e r
esu
lt o
f th
is is
like
ly t
o b
e o
ng
oin
g u
pw
ard
pre
ssu
re o
n d
air
y p
rod
uci
ng
lan
d, w
hile
pro
cess
fo
r d
air
y
catt
le a
re a
lso
like
ly t
o r
ise
, pa
rtly
infl
ue
nce
d b
y g
row
ing
live
da
iry
catt
le e
xpo
rts,
wit
h a
rou
nd
85
% o
f th
is A
UD
20
0 m
illio
n
tra
de
de
stin
ed
fo
r C
hin
a in
FY
20
14
.
Th
e im
pa
ct
on
do
wn
stre
am
co
sts
will
als
o li
kely
dri
ve f
urt
he
r
inve
stm
en
t b
y C
hin
ese
pro
cess
ors
up
th
e s
up
ply
ch
ain
.
Low
er
imp
ort
co
sts
are
like
ly t
o d
rive
do
wn
loca
l raw
milk
pri
ces,
wh
ile in
cre
asi
ng
th
e p
rice
ad
va
nta
ge
of
imp
ort
ed
UH
T m
ilk o
ver
do
me
stic
pro
du
cts
. As
such
, th
e m
ajo
r
Ch
ine
se m
ilk p
roce
sso
rs, s
uch
as
Me
ng
niu
, Bri
gh
t a
nd
Yili
are
all
like
ly t
o s
ee
k to
incr
ea
se p
rod
uc
tio
n o
f th
eir
bra
nd
ed
imp
ort
UH
T p
rod
uc
ts.
Th
e im
pa
ct
of
the
Ch
AF
TA f
or
ba
by
form
ula
pro
du
cers
may
be
less
th
an
th
e o
the
r m
ajo
r d
air
y p
rod
uc
t ca
teg
ori
es.
In
the
co
nti
nu
ing
wa
ke o
f th
e m
ela
min
e s
can
da
l, C
hin
ese
con
sum
ers
re
ma
in h
esi
tan
t to
use
do
me
stic
ally
pro
du
ced
pro
du
cts
, ch
oo
sin
g t
o p
ay w
ha
t ca
n b
e a
siz
ea
ble
pre
miu
m
for
imp
ort
ed
pro
du
cts
. As
such
, th
e im
pa
cts
of
ma
rke
tin
g,
inn
ov
ati
on
an
d d
istr
ibu
tio
n m
ay c
on
tin
ue
to
be
th
e m
ajo
r
dri
vers
in t
his
se
gm
en
t.
In t
he
sh
ort
to
me
diu
m t
erm
, th
e im
pa
ct
of
da
iry
tari
ff
cha
ng
es
cou
ld b
e b
lun
ted
by
the
slu
gg
ish
gro
wth
. Wit
h
Au
stra
lia’s
pro
du
cti
on
of
bo
th W
MP
an
d li
qu
id m
ilk r
un
nin
g
at
low
sin
gle
dig
it fi
gu
res
ove
r th
e p
ast
five
ye
ars
, th
e
ind
ust
ry’s
ch
alle
ng
e r
em
ain
s to
lift
pro
du
cti
vit
y to
me
et
the
fo
reca
st d
em
an
d.
TH
E D
AIR
Y D
EA
L
Fran
ce 4
4%
Aust
ralia
18%
Chile
10%
Spai
n 7%
Italy
7%
US
6%
New
Zea
land
2%
Rest
of W
orld
6%
27
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E C
HIN
ES
E M
AR
KE
T W
ILL
CO
NT
INU
E T
O O
PE
N
UP
FO
R A
US
TR
AL
IAN
WIN
E P
RO
DU
CE
RS
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 1
1: B
Y V
ALU
E
So
urc
e: W
ines
-in
fo.c
om
AN
Z A
na
lysi
s
FIG
UR
E 1
2: B
Y V
OLU
ME
So
urc
e: W
ines
-in
fo.c
om
AN
Z A
na
lysi
s
Brea
kdow
n of
Chi
na’s
imp
ort w
ine
mar
ket 1
H14
Th
e t
ari
ff c
uts
will
se
e a
n in
cre
asi
ng
nu
mb
er
of
qu
alit
y
Au
stra
lian
win
es
be
com
ing
av
aila
ble
to
Ch
ine
se c
on
sum
ers
.
Th
is is
like
ly t
o b
e d
rive
n b
y C
hin
ese
win
e im
po
rte
rs w
ho
may
pre
vio
usl
y h
ave
be
en
de
terr
ed
fro
m in
clu
din
g A
ust
ralia
n
win
es
in t
he
ir p
ort
folio
s.
In t
he
wa
ke o
f th
e C
hA
FTA
, se
vera
l ne
w d
istr
ibu
tio
n
ag
ree
me
nts
we
re a
nn
ou
nce
d. T
he
So
uth
Au
stra
lian
win
ery
Kili
kan
oo
n a
nn
ou
nce
d t
ha
t it
ha
d s
ign
ed
a d
istr
ibu
tio
n d
ea
l
wit
h J
oyv
io, t
he
ag
ricu
ltu
ral d
ivis
ion
of
com
pu
ter
ma
ker
Len
ovo
. Th
is f
ollo
we
d t
he
an
no
un
cem
en
t in
Au
gu
st 2
01
4 b
y
McG
uig
an
win
es
pro
du
cer
Au
stra
lian
Vin
tag
e t
ha
t th
ey
ha
d
sig
ne
d a
dis
trib
uti
on
de
al w
ith
Co
fco
in C
hin
a.
Telli
ng
ly, t
he
invo
lve
me
nt
by
Joyv
io/L
en
ovo
pro
vid
ed
fu
rth
er
ev
ide
nce
on
th
e t
ren
d o
f m
ajo
r C
hin
ese
co
mp
an
ies
acr
oss
a r
an
ge
of
sec
tors
se
eki
ng
to
mo
ve in
to t
he
win
e t
rad
e.
Pe
rha
ps
un
surp
risi
ng
ly, t
he
tre
nd
of
Ch
ine
se in
vest
ors
bu
yin
g
into
Au
stra
lian
win
eri
es
ha
s sl
ow
ed
ove
r th
e p
ast
ye
ar,
as
Ch
ine
se in
vest
ors
ev
alu
ate
d t
he
lon
ge
r te
rm im
plic
ati
on
s o
f
the
au
ste
rity
me
asu
res
on
th
eir
po
ten
tia
l in
vest
me
nts
. Fo
r
Ch
ine
se w
ine
imp
ort
ers
, th
e a
ust
eri
ty m
ea
sure
s h
ave
als
o le
ft
a d
eg
ree
of
ha
ng
ove
r st
ock
, wh
ich
will
als
o im
pa
ct
inve
stm
en
t
de
cisi
on
s fo
r th
e s
ho
rt t
o m
ed
ium
te
rm. S
ince
20
10
, Ch
ine
se
inve
stm
en
ts in
to t
he
Au
stra
lian
win
e s
ec
tor
ha
d r
em
ain
ed
ste
ad
y, t
ho
ug
h la
rge
ly o
f a
sm
alle
r sc
ale
, wit
h t
he
ass
ets
se
en
as
mo
re t
rop
hy
pu
rch
ase
s o
r re
tre
ats
, ra
the
r th
an
as
sca
lab
le
com
po
ne
nts
of
a s
up
ply
ch
ain
str
ate
gy
to p
rov
ide
exp
ort
s
of
Au
stra
lian
win
e t
o a
wid
er
sec
tio
n o
f th
e C
hin
ese
ma
rke
t.
Fran
ce 4
2%
Aust
ralia
12%
Chile
13%
Spai
n 12
%
Italy
7%
US
5%
New
Zea
land
1%
Rest
of W
orld
8%
Posi
tioni
ng A
ustr
alia
n w
ine
for g
row
th
Tari
ffs
on
Au
stra
lian
win
es
are
to
be
re
du
ced
to
ze
ro in
fo
ur
yea
rs f
rom
14
% o
n b
ott
led
win
es
an
d 2
0%
on
bu
lk w
ine
s.
Just
as
wit
h b
ee
f p
rod
uce
rs, t
he
Au
stra
lian
win
e s
ec
tor
will
see
th
is a
s a
llow
ing
th
em
to
be
com
e m
ore
co
mp
eti
tive
wit
h
the
Ch
ilea
n a
nd
Ne
w Z
ea
lan
d w
ine
se
cto
rs. N
ew
Ze
ala
nd
win
es
hav
e h
ad
no
ta
riff
s si
nce
20
12
, wh
ile C
hile
an
win
e
tari
ffs
we
re r
ed
uce
d t
o z
ero
in 2
01
5.
Th
e g
row
th r
ate
s o
f C
hile
an
win
e e
xpo
rts
to C
hin
a p
rov
ide
an
inte
rest
ing
ind
ica
tio
n o
f th
e c
ha
ng
e in
Ch
ina’
s m
ark
et.
In 2
01
3, a
ye
ar
wh
ere
Ch
ina’
s o
vera
ll w
ine
imp
ort
s fe
ll d
ue
to g
ove
rnm
en
t a
ust
eri
ty m
ea
sure
s, C
hile
an
imp
ort
s ro
se
by
alm
ost
40
%. I
n t
he
firs
t n
ine
mo
nth
s o
f 2
01
4, C
hile
an
imp
ort
s ro
se a
fu
rth
er
50
% in
vo
lum
e, c
om
pa
red
to
an
ove
rall
imp
ort
de
clin
e o
f a
rou
nd
7%
. Ch
ilea
n w
ine
s a
re
pa
rtic
ula
rly
com
pe
titi
ve in
th
e m
id t
o lo
we
r e
nd
of
the
ma
rke
t, a
se
gm
en
t w
hic
h is
als
o m
ore
re
lev
an
t to
you
ng
er
con
sum
ers
.
Th
e im
pa
ct
of
zero
ta
riff
s o
n w
ine
, an
d o
n m
ost
re
tail
go
od
s
for
tha
t m
att
er
is p
ote
nti
ally
mo
re n
oti
cea
ble
on
win
e
pu
rch
ase
d t
hro
ug
h e
-co
mm
erc
e r
eta
ilers
, wh
ere
a la
ck
of
reta
il a
sso
cia
ted
on
co
sts
such
as
ren
t, s
ale
s st
aff
an
d
ma
rke
tin
g is
less
like
ly t
o s
ee
ta
riff
re
du
cti
on
s a
bso
rbe
d
into
exi
stin
g p
rice
s. T
his
issu
e is
like
ly t
o b
eco
me
of
incr
ea
sin
g
rele
va
nce
in C
hin
a, w
he
re t
he
e-c
om
me
rce
ma
rke
t is
alr
ea
dy
larg
er
tha
n t
ha
t o
f th
e U
S, a
nd
wh
ich
by
20
20
is f
ore
cast
to
be
larg
er
tha
n t
he
US
, Fra
nce
, Ge
rma
ny
an
d t
he
UK
co
mb
ine
d.
As
e-c
om
me
rce
gia
nts
su
ch a
s JD
an
d A
liba
ba
se
ek
to
en
ha
nce
th
eir
infr
ast
ruc
ture
an
d lo
gis
tics
to
allo
w o
vern
igh
t
de
live
ry o
f a
ny
go
od
to
an
ywh
ere
in C
hin
a, A
ust
ralia
n w
ine
exp
ort
ers
will
incr
ea
sin
gly
ne
ed
to
bu
ild o
nlin
e d
istr
ibu
tio
n
op
tio
ns
into
th
eir
ma
rke
tin
g s
tra
teg
ies.
Th
e c
ha
llen
ge
fo
r A
ust
ralia
n w
ine
exp
ort
ers
to
Ch
ina
diff
ers
by
pro
du
ct.
Fo
r th
ose
exp
ort
ing
th
e le
ss e
xpe
nsi
ve v
ari
eti
es,
the
co
nsu
me
r p
rice
re
du
cti
on
s a
s a
re
sult
of
the
ta
riff
cu
ts w
ill
allo
w t
he
m t
o t
ack
le c
om
pe
tito
rs n
ot
just
fro
m C
hile
, bu
t fr
om
exp
ort
ers
su
ch a
s S
pa
in a
nd
Ita
ly, a
s th
ey
see
k to
ga
in m
ore
ma
rke
t sh
are
fro
m t
he
yo
un
ge
r, le
ss a
fflu
en
t, p
rice
co
nsc
iou
s
bu
t so
cia
lly a
spir
ati
on
al C
hin
ese
co
nsu
me
r.
For
exp
ort
ers
sh
ipp
ing
th
e h
igh
er
pri
ced
pro
du
ct,
th
e
cha
llen
ge
will
co
nti
nu
e t
o b
e t
he
mo
no
lith
of
the
Fre
nch
ind
ust
ry, w
hic
h c
on
tin
ue
s to
en
joy
an
alm
ost
un
tou
cha
ble
rep
uta
tio
n in
th
e e
yes
of
affl
ue
nt
Ch
ine
se c
on
sum
ers
,
refl
ec
ted
in it
s m
ark
et
sha
re o
f a
rou
nd
50
% o
f a
ll w
ine
imp
ort
s.
To m
an
y o
f th
ese
co
nsu
me
rs, w
he
the
r in
re
tail
or
rest
au
ran
ts,
the
hig
he
r th
e p
rice
of
a b
ott
le, t
he
gre
ate
r it
s a
ttra
cti
ven
ess
.
Th
e c
ha
llen
ge
fo
r A
ust
ralia
n w
ine
exp
ort
ers
in t
his
ma
rke
t
seg
me
nt
will
co
nti
nu
e t
o b
e t
o b
ala
nce
th
e v
olu
me
de
ma
nd
for
the
ir e
xpo
rts
wit
h t
he
exc
lusi
vit
y o
f th
eir
pro
du
ct,
wh
ile
po
siti
on
ing
Au
stra
lian
win
e a
s u
niq
ue
, bu
t a
s a
n a
lte
rna
tive
to t
he
Fre
nch
pro
du
ct.
54
45
36
27
18 9 -
228.
718
4.0
000
tonn
es c
wt
Chill
edFr
ozen
04
05
07
09
11
13
06
08
10
12
14
29
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 1
4: A
US
TR
AL
IAN
BE
EF
EX
PO
RT
S T
O C
HIN
A
So
urc
e: D
AF
F a
nd
AN
Z r
esea
rch
Braz
il re
mai
ns a
key
com
pet
itive
thre
at in
bee
f
Wh
ile t
he
Ch
AF
TA h
as
rece
ive
d a
po
siti
ve r
esp
on
se f
rom
th
e
Au
stra
lian
be
ef
sec
tor,
it is
imp
ort
an
t to
ke
ep
th
e p
ote
nti
al
imp
lica
tio
ns
in p
ers
pe
cti
ve. F
or
exa
mp
le, l
oo
kin
g f
orw
ard
,
it is
hig
hly
un
like
ly t
ha
t th
e c
om
me
nce
me
nt
of
the
Ch
AF
TA
will
hav
e a
nyt
hin
g li
ke t
he
imp
ac
t o
n b
ee
f im
po
rts
as
the
20
13
fo
od
sa
fety
issu
es.
Of
gre
ate
r im
pac
t is
like
ly t
o b
e C
hin
a’s
ann
ou
nce
me
nt,
coin
cid
en
tally
at
the
sam
e t
ime
as
the
Ch
AF
TA a
nn
ou
nce
me
nt,
that
it w
ou
ld r
eo
pe
n it
s o
ffici
al b
ee
f tr
ade
wit
h B
razi
l, w
hic
h
ha
d c
ea
sed
in 2
01
2 f
ollo
win
g t
he
dis
cove
ry o
f a
BS
E c
ase
in B
razi
l’s P
ara
na
Sta
te. F
ollo
win
g t
he
re
-op
en
ing
, Bra
zil
an
no
un
ced
th
at
it e
xpe
cte
d t
o s
ell
be
twe
en
US
D9
40
mill
ion
an
d U
SD
1.4
bill
ion
wo
rth
of
be
ef
to C
hin
a in
20
15
.
Th
e r
e-o
pe
nin
g o
f tr
ad
e w
ith
Bra
zil i
s a
lso
like
ly t
o s
ee
a m
ajo
r
cha
ng
e in
th
e “g
rey
tra
de
”, th
e u
no
ffici
al e
ntr
y o
f b
ee
f to
Ch
ina
fro
m p
roh
ibit
ed
exp
ort
ers
. Cu
rre
ntl
y, A
NZ
ca
lcu
late
s th
at
aro
un
d 7
% o
f C
hin
a’s
be
ef
con
sum
pti
on
is p
rov
ide
d b
y o
ffici
al
imp
ort
s, f
rom
co
un
trie
s su
ch a
s A
ust
ralia
, wh
ile a
rou
nd
12
%
is s
up
plie
d b
y u
no
ffici
al i
mp
ort
s. T
his
ha
s in
clu
de
d A
me
rica
n,
Bra
zilia
n a
nd
Ind
ian
be
ef
en
teri
ng
th
rou
gh
co
un
trie
s su
ch
Ho
ng
Ko
ng
an
d V
ietn
am
.
FIG
UR
E 1
3: C
HIN
A B
EE
F I
MP
OR
TS
No
te: 1
4*
- re
pre
sen
ts d
ata
un
til N
ov-
20
14
So
urc
e: U
S M
eat
Exp
ort
Fed
era
tio
n a
nd
AN
Z r
esea
rch
50
0
40
0
30
0
20
0
100 0
41.6
22.0
19.6
28.9
27.7
53.1
103.
811
2.4
281.
4
1,33
0.1
1,25
0.4
04
05
06
07
09
11
13
08
10
12
14*
Valu
e (U
SD m
)Vo
lum
e (’0
00 t)
000
tonn
es c
wt
In a
dd
itio
n, w
hile
Ch
ine
se in
vest
ors
may
hav
e a
ne
cdo
tally
bo
ug
ht
aro
un
d 1
00
Bo
rde
au
x v
ine
yard
s in
th
e p
ast
five
ye
ars
,
the
inve
stm
en
t a
pp
roa
che
s to
Au
stra
lian
win
eri
es
are
sti
ll
rela
tive
ly u
nso
ph
isti
cate
d, i
n t
erm
s o
f fa
cto
rs s
uch
as
va
rie
tals
,
loca
tio
ns
an
d p
roce
ssin
g f
aci
litie
s –
th
is is
no
t o
verl
y su
rpri
sin
g
giv
en
th
e r
ela
tive
ly r
ece
nt
intr
od
uc
tio
n o
f in
tern
ati
on
al w
ine
s
to t
he
Ch
ine
se p
ala
te.
Th
e t
imin
g o
f th
e C
hA
FTA
, co
mb
ine
d w
ith
a y
ea
r o
f
ev
alu
ati
ng
th
e im
plic
ati
on
s o
f th
e a
ust
eri
ty m
ea
sure
s,
is li
kely
to
se
e a
re
turn
in C
hin
ese
inve
sto
rs t
o t
he
Au
stra
lian
win
e s
ec
tor.
Un
do
ub
ted
ly, s
ma
ller
bo
uti
qu
e
Au
stra
lian
win
eri
es,
pa
rtic
ula
rly
in t
he
su
b A
UD
10
mill
ion
ran
ge
, will
re
ma
in a
ttra
cti
ve a
sse
ts f
or
Ch
ine
se in
vest
ors
,
as
the
ir o
utp
ut
leve
l pro
vid
es
en
ou
gh
of
a v
olu
me
fo
r
exp
ort
an
d d
istr
ibu
tio
n t
hro
ug
h t
arg
ete
d o
utl
ets
in C
hin
a.
Ho
we
ver,
as
is in
cre
asi
ng
ly c
om
mo
n in
inve
stm
en
ts a
cro
ss
diff
ere
nt
ag
ricu
ltu
ral p
rod
uc
tio
n s
ec
tors
, th
e g
row
ing
rea
lisa
tio
n b
y in
vest
ors
th
at
ind
ivid
ua
l ag
ricu
ltu
ral o
pe
rati
on
s
req
uir
e s
pe
cia
lise
d a
nd
exp
eri
en
ced
ma
na
ge
me
nt
is li
kely
to s
ee
a s
tro
ng
lea
nin
g t
ow
ard
join
t ve
ntu
re m
od
els
wit
h
vin
eya
rd a
nd
win
ery
ow
ne
rs.
For
inve
sto
rs f
ocu
ssin
g o
n la
rge
r o
pe
rati
on
s, w
ith
th
e s
cale
for
wid
er
dis
trib
uti
on
in C
hin
a, a
tte
nti
on
is li
kely
to
be
str
on
ge
r
on
win
eri
es
wit
h m
ore
ad
va
nce
d b
ott
ling
op
era
tio
ns,
wit
h
the
ab
ility
to
str
ea
mlin
e t
he
log
isti
cs a
nd
dis
trib
uti
on
pro
cess
fro
m t
he
vin
eya
rd, t
hro
ug
h b
ott
ling
, to
th
e d
istr
ibu
tio
n
ne
two
rk it
self
wit
hin
Ch
ina
.
A f
urt
he
r fa
cto
r lik
ely
to
imp
act
the
win
e s
up
ply
ch
ain
be
twe
en
Au
stra
lia a
nd
Ch
ina
is t
he
ro
le o
f th
e m
ajo
r A
ust
ralia
n r
eta
ilers
,
Co
les
and
Wo
olw
ort
hs.
In t
he
Au
stra
lian
do
me
stic
mar
ket,
the
tw
o m
ajo
rs a
re in
cre
asi
ng
ly p
laci
ng
pre
ssu
re o
n in
div
idu
al
win
eri
es,
as
the
y in
cre
ase
th
eir
ow
n b
ask
et
of
pri
va
te la
be
l
win
es,
an
d t
he
sh
elf
sp
ace
of
the
se la
be
ls.
In D
ece
mb
er
20
14
, Wo
olw
ort
hs
acq
uir
ed
th
e A
ust
ralia
n-
ow
ne
d C
hin
ese
win
e d
istr
ibu
tor
Su
mm
erg
ate
Fin
e W
ine
s
and
Sp
irit
s, w
hic
h c
om
bin
es
dis
trib
uti
on
rig
hts
for
aro
un
d 8
0
bra
nd
s, a
s w
ell
as b
oth
on
line
an
d r
eta
il b
usi
ne
sse
s in
Ch
ina.
It is
re
aso
nab
le t
o a
ssu
me
th
at W
oo
lwo
rth
s w
ill s
ee
k to
use
its
exp
ert
ise
to
exp
and
th
e C
hin
ese
re
tail
sco
pe
of
the
ne
two
rk,
incr
eas
ing
th
e v
olu
me
of
its
pri
vate
lab
el w
ine
s o
nto
th
e
Ch
ine
se m
arke
t, w
hile
Co
les
may
eve
ntu
ally
ch
oo
se t
o r
ep
licat
e
the
str
ate
gy,
as
bo
th t
ake
ad
van
tag
e o
f th
e t
ariff
cu
ts. T
his
sce
nar
io w
ou
ld in
ten
sify
th
e c
om
pe
titi
on
for
smal
ler
Au
stra
lian
exp
ort
ers
, an
d in
cre
ase
th
e im
po
rtan
ce o
f cr
eat
ing
str
ate
gic
rela
tio
nsh
ips
wit
h d
istr
ibu
tors
wh
o m
ost
mat
ch t
he
ir n
ee
ds.
SP
OT
LIG
HT
ON
BE
EF
Th
e c
ha
ng
e in
Ch
ina’
s b
ee
f co
nsu
mp
tio
n h
ab
its
ove
r th
e
pa
st t
wo
de
cad
es
hav
e b
ee
n o
ne
of
the
mo
st m
ark
ed
of
an
y
ag
ricu
ltu
re s
ec
tor.
Ch
ine
se c
on
sum
ers
hav
e t
rad
itio
na
lly b
ee
n
low
co
nsu
me
rs o
f b
ee
f, d
eri
vin
g t
he
va
st m
ajo
rity
of
the
ir
me
at
req
uir
em
en
ts f
rom
po
rk a
nd
ch
icke
n. H
ow
eve
r, tw
o f
oo
d
safe
ty e
ven
ts in
20
13
ch
an
ge
d t
his
dyn
am
ic. T
he
de
tec
tio
n o
f
Av
ian
Infl
ue
nza
(B
ird
Flu
) in
po
ult
ry, a
s w
ell
as
the
dis
cove
ry
of
tho
usa
nd
s o
f d
ea
d p
igs
in H
ua
ng
pu
a r
ive
r n
ea
r S
ha
ng
ha
i,
led
to
an
up
surg
e in
be
ef
con
sum
pti
on
, as
cau
tio
us
Ch
ine
se
con
sum
er
sou
gh
t a
lte
rna
tive
va
rie
tie
s o
f m
ea
t.
As
a r
esu
lt, C
hin
a’s
offi
cia
l be
ef
imp
ort
s im
me
dia
tely
gre
w
fou
rfo
ld, f
rom
28
1,0
00
to
nn
es
in 2
01
2 t
o 1
.3 m
illio
n t
on
ne
s
in 2
01
3. C
hin
a’s
be
ef
imp
ort
po
licy
ha
s b
ee
n d
rive
n b
y
do
me
stic
he
alt
h a
nd
fo
od
sa
fety
issu
es,
ba
nn
ing
imp
ort
s
fro
m t
ho
se c
ou
ntr
ies
wh
ich
do
no
t h
ave
dis
ea
se f
ree
catt
le/b
ee
f in
du
stri
es
– a
mo
ve w
hic
h w
as
init
ially
of
mo
st b
en
efi
t to
Au
stra
lia, U
rug
uay
an
d N
ew
Ze
ala
nd
.
For
Au
stra
lia, b
ee
f e
xpo
rts
to C
hin
a r
ose
eq
ua
lly s
ha
rply
, fro
m
aro
un
d 5
0,0
00
to
nn
es
in 2
01
2 t
o 2
28
,00
0 t
on
ne
s in
20
13
. Th
e
bu
lk o
f th
is w
as
fro
zen
be
ef,
wh
ile t
he
re
ma
ind
er
wa
s ch
ille
d.
Au
stra
lia’s
be
ef f
ort
un
es
we
re a
ide
d b
y a
ban
on
exp
ort
s to
Ch
ina
by
its
maj
or
glo
bal
co
mp
eti
tors
, in
clu
din
g t
he
US,
Bra
zil a
nd
Ind
ia.
FO
OD
SA
FE
TY
HA
S B
EE
N T
HE
PR
IMA
RY
DR
IVE
R
OF
CH
INE
SE
BE
EF
IM
PO
RT
GR
OW
TH
31
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E A
US
TR
AL
IAN
CA
TT
LE
HE
RD
IS
CU
RR
EN
TLY
AT
IT
S L
OW
ES
T P
OIN
T F
OR
AR
OU
ND
TW
O D
EC
AD
ES
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 1
5: B
EE
F “
GR
EY
CH
AN
NE
LS
” IN
TO
CH
INA
So
urc
e: A
NZ
An
aly
sis
Sim
ilarl
y, t
he
Au
stra
lian
be
ef
sec
tor
is u
nlik
ely
to
se
e a
n
imm
ed
iate
imp
ac
t o
n t
rad
e v
olu
me
s to
Ch
ina
, du
e t
o t
he
curr
en
t lo
w p
oin
t o
f th
e A
ust
ralia
n h
erd
cyc
le, r
esu
ltin
g in
the
vo
lum
e o
f ca
ttle
sim
ply
no
t b
ein
g a
va
ilab
le. T
he
Au
stra
lian
catt
le h
erd
is c
urr
en
tly
at
its
low
est
po
int
for
aro
un
d t
wo
de
cad
es,
wit
h n
um
be
rs d
ram
ati
cally
re
du
ced
th
rou
gh
fa
cto
rs
incl
ud
ing
incr
ea
sed
sla
ug
hte
r, liv
e e
xpo
rts
an
d in
cre
ase
d
pa
dd
ock
mo
rta
lity
bro
ug
ht
on
by
dro
ug
ht.
In 2
01
4, A
ust
ralia
saw
a r
eco
rd c
att
le t
urn
-off
, of
aro
un
d 1
0.4
mill
ion
– m
ad
e
up
of
1.1
mill
ion
live
exp
ort
s a
nd
9.3
mill
ion
he
ad
sla
ug
hte
red
– a
fig
ure
wh
ich
is u
nsu
sta
ina
ble
, pa
rtic
ula
rly
con
sid
eri
ng
the
fe
ma
le p
ort
ion
of
the
na
tio
na
l kill
wa
s o
ver
50
%.
At
the
sam
e t
ime
, th
e c
urr
en
t st
ron
g b
ee
f d
em
and
fro
m t
he
US
will
co
nti
nu
e t
o li
mit
th
e e
xce
ss b
ee
f av
aila
bili
ty. W
ith
its
ow
n
he
rd h
avin
g h
it a
six
ty y
ear
low
in 2
01
4, U
S im
po
rts
of
Au
stra
lian
be
ef
are
like
ly t
o r
em
ain
str
on
g in
th
e s
ho
rt t
o m
ed
ium
te
rm,
wit
h s
hip
me
nts
hav
ing
ris
en
by
87
% in
20
14
, acc
ou
nti
ng
for
the
en
tire
ad
dit
ion
al b
ee
f e
xpo
rt q
uan
tity
fro
m 2
01
3.
Min
dfu
l of
the
loo
min
g c
on
tra
cti
on
on
th
e A
ust
ralia
n c
att
le
he
rd, a
nd
of
the
ir e
xist
ing
lon
g t
erm
an
d f
ruit
ful r
ela
tio
nsh
ips
wit
h c
ust
om
ers
in m
ark
ets
su
ch a
s In
do
ne
sia
an
d J
ap
an
,
Au
stra
lian
be
ef
exp
ort
ers
may
be
re
luc
tan
t to
sh
ift
larg
e
volu
me
s to
Ch
ina
in t
he
sh
ort
to
me
diu
m t
erm
, pre
ferr
ing
a g
rad
ua
l in
cre
ase
d p
rese
nce
in t
ha
t m
ark
et.
Loo
kin
g f
urt
he
r a
he
ad
, th
e a
dv
an
tag
es
for
Au
stra
lian
be
ef
will
be
com
e c
lea
rer
in t
he
lon
ge
r te
rm. I
n e
xam
inin
g t
he
cap
ita
l im
plic
ati
on
s o
f th
e C
hA
FTA
on
th
e A
ust
ralia
n b
ee
f
sec
tor,
it is
imp
ort
an
t to
ba
lan
ce t
he
re
du
ced
ta
riff
s w
ith
a n
um
be
r o
f o
the
r fa
cto
rs.
For
pro
du
cers
, th
eir
ave
rag
e r
ela
tive
ly s
ma
ll sc
ale
will
me
an
tha
t th
e m
ajo
rity
will
co
nti
nu
e t
o b
e p
rice
ta
kers
, wit
h
the
ir r
eve
nu
e im
pa
cte
d m
ore
by
the
fa
cto
rs im
pa
cti
ng
wo
rld
pri
ces,
ra
the
r th
an
th
e s
pe
cifi
c C
hin
ese
ma
rke
t.
Th
e p
rod
uce
rs w
ho
will
be
in a
be
tte
r p
osi
tio
n a
re t
ho
se
wh
o a
re o
f a
larg
er
sca
le a
nd
we
ll in
teg
rate
d, w
ith
a d
eg
ree
of
con
tro
l or
infl
ue
nce
ove
r th
e s
up
ply
ch
ain
.
For
the
ma
jori
ty o
f sm
alle
r p
rod
uce
rs w
ho
are
exp
ort
ing
dir
ec
tly,
th
e t
ari
ff c
uts
will
allo
w t
he
m t
he
op
po
rtu
nit
y o
f
be
com
ing
incr
ea
sin
gly
mo
re c
om
pe
titi
ve a
nd
pro
fita
ble
.
For
the
se p
rod
uce
rs, w
ho
by
the
ir s
cale
are
like
ly t
o b
e in
the
mo
re p
rod
uc
tive
an
d in
no
va
tive
qu
art
ile o
f th
e s
ec
tor,
the
ir in
cre
ase
d m
arg
ins
will
allo
w t
he
m t
o lo
ok
at
gre
ate
r
op
po
rtu
nit
ies
to e
nh
an
ce t
he
ir o
pe
rati
on
s, w
he
the
r th
rou
gh
incr
ea
sed
sca
le, i
mp
rove
d t
ech
no
log
y, o
r d
ive
rsifi
cati
on
of
the
ir o
ffe
rin
g.
For
the
ma
jori
ty o
f sm
alle
r p
rod
uce
rs, i
nd
ire
ctl
y e
xpo
rtin
g,
the
ch
alle
ng
e w
ill b
e t
o s
ee
th
em
selv
es
as
a s
tra
teg
ic s
up
plie
r
wit
hin
an
inte
gra
ted
va
lue
ch
ain
inst
ea
d o
f a
su
pp
lier
of
a c
om
mo
dit
y. A
n e
xam
ple
of
this
co
uld
be
an
ab
att
oir
in
Qu
ee
nsl
an
d w
hic
h s
pe
cia
lise
s in
va
lue
-ad
de
d c
uts
fo
r e
xpo
rt
to C
hin
a a
nd
re
qu
ire
s a
ce
rta
in s
tyle
of
an
ima
l th
at
a p
rod
uce
r
is p
rep
are
d t
o in
vest
in s
up
ply
ing
, as
op
po
sed
to
se
llin
g
to t
he
hig
he
st b
idd
er,
yea
r-in
-ye
ar
ou
t.
In e
sse
nce
, th
is w
ou
ld b
e a
bo
ut
the
pro
du
cer
do
ing
wh
at
the
y a
re b
est
at
wit
hin
th
eir
pa
rt o
f th
e v
alu
e c
ha
in a
nd
po
siti
on
ing
th
em
selv
es
as
a s
tra
teg
ica
lly im
po
rta
nt
sup
ply
po
int
as
op
po
sed
to
on
e o
f m
an
y o
pti
on
s fr
om
wh
ich
to
bu
y ra
w m
ate
ria
l. T
his
co
uld
be
ach
ieve
d b
y u
nd
ers
tan
din
g
the
str
ate
gie
s o
f th
e b
ee
f p
roce
sso
rs w
ith
re
spe
ct
to C
hin
a
an
d d
ete
rmin
ing
ho
w b
est
to
co
mp
lem
en
t th
em
in o
rde
r
to d
rive
a h
igh
er
retu
rn f
or
the
m a
nd
th
e p
rod
uce
r. M
an
y o
f
the
se fi
rst
an
d s
eco
nd
sta
ge
pro
cess
ors
are
fo
reig
n o
wn
ed
an
d t
he
re is
a h
eav
y e
mp
ha
sis
on
ap
pe
alin
g t
o A
sia
, le
ss s
o
Ch
ina
in is
ola
tio
n.
Th
e b
en
efi
ts o
f th
e g
rad
ua
l ta
riff
re
du
cti
on
s a
re m
ore
like
ly t
o
be
fe
lt b
y b
ee
f p
roce
sso
rs e
xpo
rtin
g t
o C
hin
a. L
ike
th
e d
ire
ct
exp
ort
ing
pro
du
cers
, th
e lo
ng
er
term
incr
ea
sed
ma
rgin
s
thro
ug
h t
he
ta
riff
re
du
cti
on
s sh
ou
ld a
llow
th
e p
roce
sso
rs t
o
stra
teg
ica
lly e
xam
ine
op
tio
ns
to u
psc
ale
th
eir
op
era
tio
ns.
Fo
r
ma
ny
pro
cess
ors
, th
e r
ap
id r
ate
of
cha
ng
e in
th
e d
istr
ibu
tio
n
cha
in, p
art
icu
larl
y w
ith
in C
hin
a, i
s lik
ely
to
fo
rce
th
em
to
re-e
va
lua
te t
he
ir p
roce
ssin
g a
nd
pa
cka
gin
g in
fra
stru
ctu
re,
an
d s
ub
seq
ue
nt
cap
ex
op
tio
ns.
Fo
r e
xam
ple
, as
ma
jor
Ch
ine
se
log
isti
cs o
pe
rato
rs in
cre
asi
ng
ly s
ee
k to
be
ab
le t
o d
eliv
er
an
y
typ
e o
f g
oo
d t
o a
nyw
he
re in
Ch
ina
ove
rnig
ht,
Au
stra
lian
be
ef
pro
cess
ors
may
se
ek
to p
ack
ag
e t
he
ir b
ee
f cu
ts r
ea
dy
for
dir
ec
t d
istr
ibu
tio
n t
o C
hin
ese
su
pe
rma
rke
t sh
elv
es.
Aro
un
d 1
2%
of
Ch
ina’
s b
ee
f co
nsu
mp
tio
n is
pro
vid
ed
via
un
offi
cial
, gre
y im
po
rts.
33
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E L
OC
AL
DE
MA
ND
AN
D D
EM
OG
RA
PH
IC C
ON
DIT
ION
S
FO
R H
EA
LTH
CA
RE
IN
CH
INA
AR
E E
XT
RE
ME
LY A
TT
RA
CT
IVE
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
SP
OT
LIG
HT
ON
HE
ALT
HC
AR
E
Am
on
gst
th
e m
an
y o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
, on
e
of
the
larg
est
will
be
in h
ea
lth
. Th
is b
roa
d c
ate
go
ry c
ove
rs
eve
ryth
ing
fro
m h
osp
ita
ls, a
ge
d c
are
, ph
arm
ace
uti
cals
,
me
dic
al e
qu
ipm
en
t a
nd
vit
am
ins,
all
of
wh
ich
are
incl
ud
ed
in t
he
Ch
AF
TA.
Tota
l he
alt
hca
re e
xpe
nd
itu
re in
Ch
ina
is e
xpe
cte
d t
o g
row
at
an
an
nu
alis
ed
ra
te o
f 1
3.4
% t
o U
SD
1.0
27
tri
llio
n b
y 2
01
8
(So
urc
e: B
MI)
. In
co
mp
ari
son
, Au
stra
lia’s
exp
en
dit
ure
on
he
alt
hca
re is
aro
un
d A
UD
15
0 b
illio
n a
nd
ha
s b
ee
n g
row
ing
in t
he
low
sin
gle
dig
its
(So
urc
e: A
IHW
).
Th
e r
ap
id in
cre
ase
an
d e
xpe
cte
d f
utu
re in
cre
ase
in C
hin
ese
he
alt
hca
re e
xpe
nd
itu
re c
an
be
lin
ked
to
a g
row
ing
an
d
ag
ein
g p
op
ula
tio
n. T
his
de
mo
gra
ph
ic t
ailw
ind
fo
r th
e
sec
tor
sho
uld
last
un
til a
t le
ast
20
30
wh
en
th
e p
op
ula
tio
n
is e
xpe
cte
d t
o p
ea
k a
t 1
.46
bill
ion
pe
op
le. E
ven
be
yon
d t
ha
t
po
int
it’s
like
ly t
o b
e t
he
big
ge
st o
r se
con
d b
igg
est
he
alt
h
ma
rke
t in
th
e w
orl
d, w
hic
h s
ho
uld
no
t b
e d
ifficu
lt g
ive
n t
ha
t
Ch
ina
pre
sen
tly
ha
s th
e s
eco
nd
low
est
pe
r ca
pit
al m
ed
ica
l
serv
ice
s e
xpe
nd
itu
re a
mo
ng
st le
ad
ing
em
erg
ing
ma
rke
ts
an
d h
ea
lth
care
sp
en
din
g in
Ch
ina
re
ma
ins
rela
tive
ly lo
w
at
be
low
6%
of
GD
P.
In a
dd
itio
n t
o t
he
ove
rall
incr
ea
se in
de
ma
nd
fo
r h
ea
lth
care
serv
ice
s, t
he
incr
ea
sed
we
alt
h o
f th
e C
hin
ese
mid
dle
cla
ss
ha
s le
d t
o a
n in
cre
ase
d n
ee
d t
o p
rov
ide
hig
he
r q
ua
lity
he
alt
hca
re. T
o t
ha
t e
nd
, th
e C
hin
ese
Go
vern
me
nt
is s
ee
kin
g
to d
eve
lop
an
d e
nco
ura
ge
inve
stm
en
t in
pri
va
te h
ea
lth
care
an
d in
cre
ase
d f
ore
ign
inve
stm
en
t is
on
e m
eth
od
of
he
lpin
g
to c
lose
th
e g
ap
an
d p
rov
ide
hig
he
r v
alu
e s
erv
ice
s to
Ch
ina’
s
gro
win
g m
idd
le c
lass
.
Au
stra
lia h
as a
fan
tast
ic o
pp
ort
un
ity
as t
he
Ch
AF
TA w
ill p
rovi
de
be
st e
ver
acc
ess
fo
r se
rvic
es
incl
ud
ing
ho
spit
als
, ag
ed
ca
re,
an
d m
ed
ica
l se
rvic
e s
up
plie
rs. T
his
acc
ess
allo
ws
Au
stra
lian
bu
sin
ess
es
to b
uild
, ru
n o
r b
uy
wh
olly
ow
ne
d s
ub
sid
iari
es
com
pa
red
wit
h p
rev
iou
s p
olic
y w
he
re t
he
re w
ere
eq
uit
y
rest
ric
tio
ns.
Th
is w
ill c
om
plim
en
t a
20
14
pilo
t p
rog
ram
fo
r
wh
olly
ow
ne
d p
riva
te h
osp
ital
s in
se
ven
cit
ies
incl
ud
ing
Be
ijin
g.
Wh
ile t
he
Ch
ine
se G
ove
rnm
en
t h
as
sim
plifi
ed
an
d im
pro
ved
the
FD
I pro
cess
th
ere
sti
ll re
ma
ins
a h
igh
leve
l of
com
ple
xity
an
d a
mb
igu
ity,
wit
h b
usi
ne
sse
s a
nd
ind
ust
rie
s cl
ass
ifie
d
into
th
ree
ma
in c
ate
go
rie
s: E
nco
ura
ge
d F
ore
ign
Inve
stm
en
t,
Re
stri
cte
d F
ore
ign
Inve
stm
en
t, a
nd
Pro
hib
ite
d F
ore
ign
Inve
stm
en
t. F
urt
he
r in
form
ati
on
on
FD
I in
to C
hin
a c
an
be
fo
un
d in
Se
cti
on
4 –
Nav
iga
tin
g t
he
ba
nki
ng
ma
rke
t.
FIG
UR
E 1
6: H
EA
LTH
CA
RE
EX
PE
ND
ITU
RE
IN
CH
INA
(US
D B
illio
n)
So
urc
e: B
MI.
Wo
rld
Ba
nk
Exe
cute
d c
orr
ec
tly,
imp
rove
d a
cce
ss a
s a
re
sult
of
the
Ch
AF
TA c
an
pro
vid
e A
ust
ralia
n b
usi
ne
sse
s w
ith
a s
ign
ifica
nt
firs
t-m
ove
r a
dv
an
tag
e a
ga
inst
oth
er
fore
ign
co
mp
eti
tors
op
era
tin
g o
r se
eki
ng
to
op
era
te in
Ch
ina
. Th
e fl
ipsi
de
ho
we
ver,
is t
ha
t b
est
eve
r a
cce
ss is
ge
ne
rally
fin
ite
an
d
in t
he
ca
se o
f th
e 2
01
4 p
ilot
pro
gra
m, n
ot
exc
lusi
ve in
all
citi
es.
Th
is n
ati
on
al w
ind
ow
of
op
po
rtu
nit
y w
ill n
ot
last
as
Ch
ina
is h
igh
ly li
kely
to
gra
nt
sim
ilar
acc
ess
to
oth
er
cou
ntr
ies
to m
ain
tain
a h
ea
lth
y le
vel o
f co
mp
eti
tio
n in
ad
dit
ion
to
incr
ea
sed
FD
I.
On
e o
f A
ust
ralia
’s k
ey
ad
va
nta
ge
s in
he
alt
hca
re s
erv
ice
s
(i.e
. ho
spit
als
, ag
ed
ca
re e
tc)
is t
he
acc
um
ula
ted
inte
llec
tua
l
pro
pe
rty
in r
un
nin
g t
he
se b
usi
ne
sse
s e
ffe
cti
vely
an
d
effi
cie
ntl
y. T
aki
ng
th
ese
str
en
gth
s to
a m
ark
et
wh
ere
th
e
de
ma
nd
co
nd
itio
ns
are
att
rac
tive
is li
kely
to
ap
pe
al t
o t
he
ma
ny
bu
sin
ess
es
tha
t h
ave
th
e c
ap
ita
l to
pa
rtic
ipa
te d
esp
ite
the
incr
ea
sed
co
mp
lexi
tie
s th
at
acc
om
pa
ny
ne
w m
ark
et
en
try
com
pa
red
wit
h a
mo
re t
ypic
al b
uye
r/su
pp
lier
rela
tio
nsh
ip.
295
377
446
525
609
690
787
899
1027
10
0
20
0
40
0
60
0
80
0
10
00
12
00
11
12
13
14F
15
F1
6F
17
F1
8F
Hea
lthca
re E
xp. $
US
6%
6%
5%
5%
5%
5%
17
%
18
%
Non
-Life
Insu
ranc
e
(CN
Y m
)
Y-O
-Y G
row
th
15
%
22
%
26
%
22
%
18
%
32
%
16
%
CA
GR
20
05
-13
: 21
.1%
CA
GR
20
01
3-2
0F
: 6.8
%
100
20
0
30
0
40
0
50
0
60
0
70
0
80
0
90
0
100
0
110
0
120
0
130
0 0
204.
916
8.3
257.
231
2.6
368.
0
484.
956
4.4
658.
0
779.
7
912.
996
3.2
1,01
8.9
1,07
2.2
1,12
2.4
1,18
0.9
1,23
9.7
17
%
05
06
07
08
09
10
11
12
13
14
F1
5F
16
F1
7F
18
F1
9F
20
F
35
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
SP
OT
LIG
HT
ON
STA
TU
TOR
Y T
HIR
D-P
AR
TY
LIA
BIL
ITY
MO
TOR
VE
HIC
LE IN
SU
RA
NC
E
Un
de
r th
e F
TA, C
hin
a h
as
com
mit
ted
to
allo
w A
ust
ralia
n
insu
ran
ce p
rov
ide
rs a
cce
ss t
o C
hin
a’s
sta
tuto
ry t
hir
d-p
art
y
liab
ility
mo
tor
veh
icle
insu
ran
ce m
ark
et.
Th
is a
cce
ss d
oe
s
no
t h
ave
re
stri
cti
on
s o
n t
he
str
uc
ture
of
the
op
era
tio
n
or
the
eq
uit
y ca
pit
al (
e.g
. fo
reig
n o
wn
ers
hip
ca
p).
Th
is u
np
rece
de
nte
d m
ark
et
op
en
ing
re
pre
sen
ts a
po
ten
tia
lly
sub
sta
nti
al o
pp
ort
un
ity
for
inte
rest
ed
Au
stra
lian
insu
rers
to le
vera
ge
th
eir
exi
stin
g e
xpe
rtis
e a
cro
ss r
isk
un
de
rwri
tin
g,
cla
ims
ma
na
ge
me
nt
an
d p
ort
folio
inve
stin
g in
to o
ne
of
the
fast
est
gro
win
g in
sura
nce
ma
rke
ts in
th
e w
orl
d.
Ch
ina’
s o
vera
ll in
sura
nce
ma
rke
t g
en
era
ted
to
tal p
rem
ium
s
of
CN
Y1
.7 t
rilli
on
(U
SD
28
0 b
illio
n)
in 2
01
3, a
nd
exp
eri
en
ced
ave
rag
e a
nn
ua
l gro
wth
of
17
% s
ince
20
05
, str
on
gly
ou
tpa
cin
g n
ati
on
al G
DP
exp
an
sio
n.
FIG
UR
E 1
7: C
HIN
A N
ON
-LIF
E I
NS
UR
AN
CE
GR
OS
S P
RE
MIU
MS
AN
D A
NN
UA
L G
RO
WT
H R
AT
ES
So
urc
e: B
MI Q
1 2
01
5 r
epo
rt a
nd
AN
Z a
na
lysi
s
FIG
UR
E 1
8: C
OM
PO
SIT
ION
OF
CH
INA
NO
N-L
IFE
IN
SU
RA
NC
E M
AR
KE
T
BA
SE
D O
N G
RO
SS
PR
EM
IUM
S
So
urc
e: B
MI Q
1 2
01
5 r
epo
rt a
nd
AN
Z a
na
lysi
s
No
te: p
erce
nta
ges
are
dif
fere
nt
fro
m B
MI s
ince
Hea
lth
& A
ccid
ent
insu
ran
ce is
co
nsi
der
ed a
s a
pa
rt o
f N
on
-Lif
e In
sura
nce
fo
r th
e a
na
lysi
s –
as
such
, th
e su
mm
ati
on
of
the
sub
-seg
men
ts u
nd
er N
on
-Lif
e is
dif
fere
nt
fro
m t
he
No
n-L
ife
insu
ran
ce p
rem
ium
rep
ort
ed b
y B
MI;
“Tra
nsp
ort
Insu
ran
ce”
rela
tes
to a
ir f
reig
ht,
ra
il f
reig
ht,
ro
ad
frei
gh
t a
nd
inla
nd
wa
terw
ay
frei
gh
t; “
Oth
ers”
incl
ud
e G
ener
al l
iab
ilit
y, C
red
it/F
ina
nci
al g
ua
ran
tee
an
d o
ther
insu
ran
ce a
s d
efin
ed b
y B
MI
Mot
or v
ehic
le in
sura
nce
has
bee
n th
e la
rges
t se
gmen
t with
in C
hina
’s no
n-lif
e in
sura
nce
mar
ket
Ch
ina’
s n
on
-lif
e in
sura
nce
ma
rke
t h
ad
gro
ss p
rem
ium
s o
f
CN
Y7
80
bill
ion
in 2
01
3 (
US
D1
27
bill
ion
) a
nd
ha
s g
row
n a
t
sub
sta
nti
al r
ate
s, a
vera
gin
g o
ver
21
% o
ver
the
pe
rio
d 2
00
5 -
20
13
, mu
ch f
ast
er
tha
n t
he
ove
rall
insu
ran
ce m
ark
et.
De
spit
e
the
hig
h g
row
th r
ate
s, p
en
etr
ati
on
leve
ls a
re s
till
rela
tive
ly lo
w
com
pa
red
to
oth
er
de
velo
pe
d m
ark
ets
du
e t
o v
ari
ou
s fa
cto
rs,
incl
ud
ing
low
pro
du
ct
awa
ren
ess
, lo
w p
en
etr
ati
on
in r
ura
l
are
as
an
d t
he
lack
of
eff
ec
tive
dis
trib
uti
on
.
In C
hin
a, m
oto
r ve
hic
le r
ela
ted
insu
ran
ce m
ake
s u
p t
he
larg
est
pro
po
rtio
n o
f n
on
-lif
e g
ross
pre
miu
ms,
re
pre
sen
tin
g o
ver
ha
lf
of
the
ma
rke
t si
nce
20
05
.
Dri
ven
by
eco
no
mic
gro
wth
, ris
ing
inco
me
leve
ls, u
rba
nis
ati
on
an
d a
gro
win
g m
idd
le c
lass
wh
ich
aff
ec
ts t
he
de
ma
nd
fo
r
cars
, mo
tor
veh
icle
insu
ran
ce t
ake
-up
is h
igh
ly d
ep
en
de
nt
on
rela
ted
go
vern
me
nt
init
iati
ves.
Gro
wth
in g
ross
pre
miu
ms
ha
s
be
en
tre
me
nd
ou
s, a
vera
gin
g 2
1%
sin
ce 2
00
5. I
n 2
01
3, t
he
siz
e
of
the
mo
tor
insu
ran
ce m
ark
et
am
ou
nte
d t
o C
NY
51
8 b
illio
n
in g
ross
pre
miu
ms
(US
D8
4 b
illio
n).
50%
28%
11%
4%7%
53%
28%
9%4%6%
56%
25%
9%4%7%
051
%
30%
8%3%8%
55%
26%
7%3%8%
59%
24%
7%3%8%
59%
22%
7%3%9%
58%
23%
7%2%10%
60%
20%
7%2%11%
59%
20%
7%2%11%
58%
21%
7%3%12%
57%
22%
7%3%12%
55%
22%
7%3%13%
54%
23%
7%3%14%
52%
24%
7%3%14%
51%
25%
7%3%15%
05
0
10
20
30
40
50
60
70
80
90
100
%
06
07
08
09
10
11
12
13
14
F1
5F
16
F1
7F
18
F1
9F
20
F
Mot
or v
ehic
le in
sura
nce
Hea
lth &
acc
iden
tPr
oper
ty In
sura
nce
Tran
spor
t Ins
uran
ceO
ther
s
NO
NL
IFE
IN
SU
RA
NC
E P
EN
ET
RA
TIO
N S
TIL
L R
EM
AIN
S L
OW
DE
SP
ITE
AN
NU
AL
GR
OW
TH
OF
21
% P
ER
AN
NU
M B
ET
WE
EN
20
05
AN
D 2
01
3
37
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E L
AR
GE
AB
SO
LUT
E S
IZE
OF
TH
E M
OT
OR
IN
SU
RA
NC
E M
AR
KE
T S
HO
UL
D
PR
OV
IDE
OP
PO
RT
UN
ITIE
S F
OR
MO
TO
R I
NS
UR
ER
S, E
SP
EC
IAL
LY N
EW
EN
TR
AN
TS
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 1
9: M
OT
OR
VE
HIC
LE
IN
SU
RA
NC
E G
RO
SS
PR
EM
IUM
S A
ND
PR
OP
OR
TIO
N O
F T
OTA
L N
ON
-LIF
E I
NS
UR
AN
CE
MA
RK
ET
So
urc
e: B
MI Q
1 2
01
5 r
epo
rt a
nd
AN
Z a
na
lysi
s
No
te: p
erce
nta
ges
are
dif
fere
nt
fro
m B
MI s
ince
Hea
lth
& A
ccid
ent
insu
ran
ce is
co
nsi
der
ed a
s a
pa
rt o
f N
on
-Lif
e In
sura
nce
fo
r th
e a
na
lysi
s –
as
such
, th
e su
mm
ati
on
of
the
sub
-seg
men
ts u
nd
er N
on
-Lif
e is
dif
fere
nt
fro
m t
he
No
n-L
ife
insu
ran
ce p
rem
ium
rep
ort
ed b
y B
MI;
“Tra
nsp
ort
Insu
ran
ce”
rela
tes
to a
ir f
reig
ht,
ra
il f
reig
ht,
ro
ad
frei
gh
t a
nd
inla
nd
wa
terw
ay
frei
gh
t; “
Oth
ers”
incl
ud
e G
ener
al l
iab
ilit
y, C
red
it/F
ina
nci
al g
ua
ran
tee
an
d o
ther
insu
ran
ce a
s d
efin
ed b
y B
MI
Mo
tor
veh
icle
insu
ran
ce in
Ch
ina
co
mp
rise
s C
om
pu
lso
ry
Th
ird
-Pa
rty
Lia
bili
ty (
CT
PL)
an
d C
om
me
rcia
l Mo
tor
Insu
ran
ces
(CM
I), t
he
latt
er
con
sist
ing
ma
inly
of
firs
t p
art
y a
nd
no
n-
com
pu
lso
ry t
hir
d-p
art
y lia
bili
ty. A
s a
re
sult
of
con
sum
ers
’
bu
yin
g b
eh
avio
ur
(i.e
. bu
nd
ling
), e
ntr
y in
to t
he
co
mp
uls
ory
thir
d-p
art
y m
ark
et
is s
ee
n a
s h
igh
ly im
po
rta
nt
for
fore
ign
insu
rers
to
acc
ess
th
e b
roa
de
r m
oto
r in
sura
nce
ma
rke
t.
Th
e g
row
th o
utl
oo
k fo
r th
e n
um
be
r o
f p
ass
en
ge
r ca
rs
ove
r th
e c
om
ing
de
cad
e is
mu
ch m
ore
re
stra
ine
d, d
ue
to a
co
mb
ina
tio
n o
f sl
ow
er
eco
no
mic
gro
wth
, a p
rop
ert
y
do
wn
turn
an
d v
eh
icle
re
gis
tra
tio
n li
mit
s in
so
me
cit
ies.
As
a r
esu
lt, t
he
mo
tor
insu
ran
ce m
ark
et
is e
xpe
cte
d t
o
gro
w a
t a
n a
vera
ge
ra
te o
f u
nd
er
3%
ove
r 2
01
3 t
o 2
02
0.
Ho
we
ver,
the
larg
e a
bso
lute
siz
e o
f th
e m
oto
r in
sura
nce
ma
rke
t sh
ou
ld c
on
tin
ue
to
pro
vid
e o
pp
ort
un
itie
s fo
r m
oto
r
insu
rers
, esp
eci
ally
ne
w e
ntr
an
ts. T
he
pri
ma
ry d
rive
r, th
e
nu
mb
er
of
pa
sse
ng
er
cars
, ha
s g
row
n a
t a
n a
vera
ge
ra
te
of
alm
ost
23
% o
ver
20
05
to
20
12
, an
d t
he
to
tal n
um
be
r
of
cars
is e
xpe
cte
d t
o s
urp
ass
20
0 m
illio
n b
y 2
02
0.
In a
dd
itio
n, C
hin
a’s
curr
en
t ca
r d
en
sity
is a
pp
roxi
ma
tely
72
ca
rs p
er
1,0
00
pe
op
le, w
hic
h is
sig
nifi
can
tly
low
er
tha
n
mo
re m
atu
re m
ark
ets
su
ch a
s th
e U
S, J
ap
an
, Au
stra
lia
an
d K
ore
a. T
he
lon
ge
r te
rm o
utl
oo
k is
th
ere
fore
att
rac
tive
for
bo
th t
he
nu
mb
er
of
mo
tor
veh
icle
s a
nd
th
e a
sso
cia
ted
insu
ran
ce r
eq
uir
em
en
ts.
FIG
UR
E 2
0: C
HIN
ES
E M
OTO
R V
EH
ICL
E I
NS
UR
AN
CE
MA
RK
ET
–
BR
EA
KD
OW
N O
F G
RO
SS
PR
EM
IUM
S
So
urc
e: C
IRC
an
d A
NZ
an
aly
sis
FIG
UR
E 2
1: A
NN
UA
L G
RO
WT
H I
N P
AS
SE
NG
ER
CA
R F
LE
ET
AN
D M
OTO
R V
EH
ICL
E I
NS
UR
AN
CE
GR
OS
S P
RE
MIU
MS
So
urc
e: B
MI Q
1 2
01
5 r
epo
rt a
nd
AN
Z a
na
lysi
s
Mot
or v
ehic
le in
sura
nce
(CN
Y m
)
Mot
or v
ehic
le %
of N
on-L
ife
112.
614
3.7
183.
021
7.5
265.
0
CA
GR
20
05
-13
: 21
.0%
CA
GR
20
13
-20
F: 2
.8%
361.
7
413.
9
476.
651
8.4
542.
155
7.9
577.
5
592.
360
1.4
616.
162
8.2
50
%5
3%
56
%
51
%
55%
59
%5
9%
58
%6
0%
59
%5
8%
57
%
55
%5
4%
52
%5
1%
05
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
80
0
06
07
08
09
10
11
12
13
14
F1
5F
16
F1
7F
18
F1
9F
20
F
CTP
L 24
%(~
RMB
125.
9Bn)
(~RM
B 39
2.5B
n)CM
I 76%
FY 2
013
5
10
15
20
25
30
35
40 0
%
06
07
08
09
10
11
12
13
14
F
Mot
or v
ehic
le in
sura
nce
Pass
enge
r car
flee
t
531
16-
9
450
96
237
453
457
557
7272
16
472
112
308
421
469
593
101
90
20
477
126
-
401
497
Aus
tral
ia
Cars
per
1,0
00 p
eopl
e
Chin
aH
ong
Kong
Indi
aJa
pan
Sing
apor
eSo
uth
Kore
aU
nite
d St
ates
UK
2005
2013
2019
F
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
39
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E E
NT
RY
OF
EX
PE
RIE
NC
ED
IN
TE
RN
AT
ION
AL
IN
SU
RA
NC
E
PR
OV
IDE
RS
WIL
L R
ES
ULT
IN
BE
TT
ER
UN
DE
RW
RIT
ING
PR
AC
TIC
ES
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 2
2: P
AS
SE
NG
ER
VE
HIC
LE
DE
NS
ITY
C
AR
S P
ER
1,0
00
PE
OP
LE
So
urc
e: B
MI Q
12
01
5 r
epo
rt a
nd
AN
Z a
na
lysi
s
FIG
UR
E 2
3: M
AR
KE
T S
HA
RE
BA
SE
D O
N P
RO
PE
RT
Y A
ND
CA
SU
ALT
Y G
RO
SS
PR
EM
IUM
S
So
urc
e: B
loo
mb
erg
, CIR
C a
nd
AN
Z a
na
lysi
s
Ch
ina
’s n
on
-lif
e i
nsu
ran
ce m
ark
et
is c
urr
en
tly
do
min
ate
d
by
do
me
stic
pro
vid
ers
, bu
t re
form
s w
ill
pro
vid
e f
ore
ign
insu
rers
wit
h g
rea
ter
op
po
rtu
nit
y t
o p
art
icip
ate
.
Co
mp
uls
ory
th
ird
-pa
rty
liab
ility
mo
tor
veh
icle
insu
ran
ce
wa
s in
tro
du
ced
in 2
00
6, w
ith
on
ly d
om
est
ic p
rov
ide
rs
init
ially
pe
rmit
ted
to
un
de
rwri
te t
his
bu
sin
ess
. Fro
m M
ay 2
01
2,
fore
ign
insu
rers
we
re a
llow
ed
to
en
ter
the
ma
rke
t –
Ch
ine
se
au
tho
riti
es
ho
pe
th
at
the
en
try
of
exp
eri
en
ced
inte
rna
tio
na
l
insu
ran
ce p
rov
ide
rs w
ill r
esu
lt in
be
tte
r u
nd
erw
riti
ng
pra
cti
ces
as
we
ll a
s p
rom
ote
gre
ate
r co
mp
eti
tio
n in
th
e lo
cal m
ark
et.
At
the
en
d o
f 2
01
3, t
he
re w
ere
64
ac
tive
pla
yers
in t
he
ove
rall
no
n-l
ife
ma
rke
t a
nd
th
e lo
cal/
fore
ign
sp
lit w
as
43
/21
. Th
e
ma
rke
t sh
are
of
fore
ign
pla
yers
(b
ase
d o
n g
ross
pre
miu
ms)
rem
ain
s sm
all,
at
aro
un
d 2
% –
as
such
, th
e p
ote
nti
al u
psi
de
for
ne
w A
ust
ralia
n e
ntr
an
ts is
en
cou
rag
ing
.
De
spit
e t
he
ir r
ela
tive
ly s
ma
ll sc
ale
in C
hin
a, f
ore
ign
insu
rers
are
fo
cuse
d o
n b
uild
ing
th
eir
cu
sto
me
r b
ase
an
d e
xpa
nd
ing
into
oth
er
insu
ran
ce li
ne
s.
Esta
blis
hmen
t req
uire
men
ts a
nd c
onsi
dera
tions
Un
de
r th
e C
hA
FTA
, Au
stra
lian
insu
rers
will
be
ab
le t
o a
cce
ss
Ch
ina’
s st
atu
tory
th
ird
-pa
rty
liab
ility
mo
tor
veh
icle
insu
ran
ce
ma
rke
t w
ith
ou
t a
ny
rest
ric
tio
ns
on
th
e s
tru
ctu
re o
f th
e
op
era
tio
n o
r th
e e
qu
ity
cap
ita
l. T
he
th
ree
fo
rms
of
on
sho
re
bu
sin
ess
op
era
tio
n f
or
fore
ign
insu
rers
are
join
t ve
ntu
re,
sub
sid
iary
or
bra
nch
.
0
10
20
30
40
50
60
70
80
90
100
%
05
1.3%
98.7
%98
.8%
1.2% 06
98.8
%
1.2% 07
98.8
%
1.2% 08
98.9
%
1.1% 09
98.9
%
1.1% 10
98.9
%
1.1% 11
98.8
%
1.2% 12
98.7
%
1.3% 13
98.0
%
2.0% 14
Dom
estic
insu
rers
% o
f Tot
alFo
reig
n in
sure
rs %
if T
otal
41
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
TH
E R
QF
II P
RO
GR
AM
SH
OU
LD
OP
EN
UP
OP
PO
RT
UN
ITIE
S I
N T
ER
MS
OF
BO
TH
IN
VE
ST
ME
NT
AL
LOC
AT
ION
AN
D F
UN
D S
OU
RC
ING
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 2
4: K
EY
CH
INA
IN
SU
RA
NC
E R
EG
UL
AT
OR
Y C
OM
MIS
SIO
N (
CIR
C)
RE
QU
IRE
ME
NT
S F
OR
FO
RE
IGN
IN
SU
RE
RS
SE
EK
ING
TO
ES
TAB
LIS
H O
PE
RA
TIO
NS
IN
CH
INA
So
urc
e: C
IRC
; Dec
isio
n o
f th
e S
tate
Co
un
cil o
n A
men
din
g <
the
Reg
ula
tio
n o
f th
e P
eop
le’s
Rep
ub
lic
of
Ch
ina
on
th
e A
dm
inis
tra
tio
n o
f Fo
reig
n-F
un
ded
Insu
ran
ce
Co
mp
an
ies
(20
13
), la
win
foch
ina
For
Au
stra
lian
fin
an
cia
l in
stit
uti
on
s se
eki
ng
to
en
ter
Ch
ina’
s m
oto
r ve
hic
le in
sura
nce
ma
rke
t, t
he
se r
eg
ula
tory
req
uir
em
en
ts, c
om
bin
ed
wit
h o
pe
rati
on
al n
ee
ds,
ra
ise
a n
um
be
r o
f e
sse
nti
al fi
na
nci
al c
on
sid
era
tio
ns:
• R
MB
FX
ris
k m
an
ag
em
en
t: C
urr
en
cy
ma
tch
ing
an
d h
ed
gin
g n
ee
ds
wit
h r
esp
ec
t to
ca
pit
al d
ep
loye
d,
div
ide
nd
s, c
ap
ita
l re
turn
an
d r
ep
ort
ing
• C
ap
ita
lisa
tio
n o
f th
e o
nsh
ore
bu
sin
ess
: In
jec
tio
n
ba
cke
d b
y e
xist
ing
ca
pit
al b
ase
or
ne
w f
un
dra
isin
g
fro
m c
ap
ita
l ma
rke
ts (
incl
ud
ing
RM
B)
• In
ve
stm
en
t m
an
ag
em
en
t: In
vest
me
nt
stra
teg
y
for
pre
miu
ms
an
d s
ha
reh
old
er
eq
uit
y, a
s w
ell
as
risk
he
dg
ing
re
qu
ire
me
nts
• T
ran
sac
tio
n b
an
kin
g:
Po
licy
pre
miu
m r
ece
ipts
an
d c
laim
s p
aym
en
ts, l
iqu
idit
y m
an
ag
em
en
t
Min
imu
m r
eg
iste
red
ca
pit
al
req
uir
em
en
t
Join
t ve
ntu
re: R
MB
20
0m
or
an
eq
uiv
ale
nt
of
RM
B2
00
m i
n f
ree
ly c
on
ve
rtib
le c
urr
en
cie
s a
nd
mu
st
be
pa
id-i
n m
on
eta
ry c
ap
ita
l.
Sub
sid
iari
es: R
MB
20
0m
or
an
eq
uiv
ale
nt
of
RM
B2
00
m i
n f
ree
ly c
on
ve
rtib
le c
urr
en
cie
s a
nd
mu
st
be
pa
id-i
n m
on
eta
ry c
ap
ita
l.
Bra
nch
es: P
are
nt
co
mp
an
y s
ha
ll p
rov
ide
min
imu
m w
ork
ing
ca
pit
al
of
RM
B2
00
m (
or
eq
uiv
ale
nt
in o
the
r fr
ee
co
nv
ert
ible
cu
rre
nc
ies)
.
No
te: T
he
CIR
C m
ay,
acc
ord
ing
to
th
e sc
op
e o
f b
usi
nes
s a
nd
bu
sin
ess
sca
le o
f th
e fo
reig
n-f
un
de
d
insu
ran
ce c
om
pa
ny,
ra
ise
the
leve
l of
reg
iste
red
ca
pit
al o
r w
ork
ing
ca
pit
al t
o a
bo
ve R
MB
20
0m
.
Ex
pe
rie
nc
eE
ng
ag
ed
in
in
sura
nc
e b
usi
ne
ss f
or
mo
re t
ha
n 3
0 y
ea
rs.
On
sho
re p
rese
nc
eM
ore
th
an
tw
o y
ea
rs s
inc
e a
re
pre
sen
tati
ve
off
ice
wa
s e
sta
bli
she
d i
n C
hin
a.
Siz
eTo
tal
ass
ets
at
the
en
d o
f th
e y
ea
r p
rio
r to
th
e a
pp
lic
ati
on
fo
r e
sta
bli
shm
en
t sh
all
be
no
le
ss
tha
n U
SD
5 b
illi
on
.
Ho
me
re
gu
lati
on
Th
e c
ou
ntr
y o
r re
gio
n w
he
re t
he
fo
reig
n i
nsu
ran
ce
co
mp
an
y i
s in
co
rpo
rate
d s
ha
ll h
av
e
sou
nd
in
sura
nc
e r
eg
ula
tio
n s
yst
em
s; a
nd
th
e f
ore
ign
in
sura
nc
e c
om
pa
ny
sh
all
ha
ve
alr
ea
dy
be
en
un
de
r th
e e
ffe
cti
ve
re
gu
lati
on
of
the
re
lev
an
t a
uth
ori
ty o
f th
e c
ou
ntr
y o
r re
gio
n.
Pru
de
nti
al
ca
pit
al
ad
eq
ua
cy
Sh
all
sa
tisf
y t
he
so
lve
nc
y s
tan
da
rd o
f th
e c
ou
ntr
y o
r re
gio
n.
Ho
me
re
gu
lato
r a
pp
rov
al
Sh
all o
bta
in t
he
ap
pro
val
fro
m r
ele
van
t au
tho
riti
es
of
the
loca
l co
un
try
or
reg
ion
fo
r th
e e
stab
lish
me
nt.
SP
OT
LIG
HT
ON
FU
ND
S -
RM
B Q
UA
LIF
IED
FO
RE
IGN
INS
TIT
UT
ION
AL
INV
ES
TOR
(R
QF
II) P
RO
GR
AM
Un
de
r th
e C
hA
FTA
, Ch
ina
ha
s fo
r th
e fi
rst
tim
e g
ran
ted
Au
stra
lia a
RM
B q
uo
ta u
nd
er
its
RM
B Q
ua
lifie
d F
ore
ign
Inst
itu
tio
na
l In
vest
or
(RQ
FII)
pro
gra
m. T
his
wo
uld
pe
rmit
Au
stra
lian
fin
an
cia
l in
stit
uti
on
s to
inve
st o
ffsh
ore
RM
B
in C
hin
ese
on
sho
re fi
na
nci
al i
nst
rum
en
ts, i
ncl
ud
ing
th
e
Ch
ine
se o
nsh
ore
se
curi
tie
s m
ark
et.
Th
is is
an
are
a o
f si
gn
ifica
nt
po
ten
tia
l gro
wth
fo
r A
ust
ralia
’s
fun
ds
ma
na
ge
me
nt
ind
ust
ry. A
ust
ralia
n f
un
d m
an
ag
ers
’
his
tory
of
inve
stm
en
t e
xpe
rtis
e a
nd
inn
ov
ati
on
, th
e R
QF
II
Pro
gra
m s
ho
uld
op
en
up
op
po
rtu
nit
ies
in t
erm
s o
f b
oth
inve
stm
en
t a
lloca
tio
n a
nd
fu
nd
so
urc
ing
.
43
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 2
5: B
AC
KG
RO
UN
D T
O R
QF
II P
RO
GR
AM
– S
EL
EC
TE
D M
ILE
ST
ON
ES
FIG
UR
E 2
6: R
QF
II A
LLO
CA
TIO
N B
Y C
OU
NT
RY
– A
S O
F 3
1 D
EC
20
14
So
urc
e: K
WM
Co
nn
ect;
Au
stra
lian
Go
vern
men
t –
th
e Tr
easu
ry; I
CB
C P
ari
s B
ran
ch p
rese
nta
tio
n A
pri
l 20
14
; Res
erve
Ba
nk
of
Au
stra
lia B
ulle
tin
Dec
emb
er Q
ua
rter
20
14
No
te: *
Taiw
an
all
oca
tio
n is
no
t ye
t o
pen
fo
r in
vest
ors
FIG
UR
E 2
7: R
QF
II Q
UO
TAS
GR
AN
TE
D B
Y I
NS
TIT
UT
ION
– A
S O
F 3
0 J
AN
20
15
So
urc
e: S
AF
E
Inve
stm
ent q
uota
ap
pro
vals
Th
e t
ab
le b
elo
w s
ho
ws
the
allo
cati
on
s g
ran
ted
to
va
rio
us
cou
ntr
ies
so f
ar
un
de
r th
e R
QF
II P
rog
ram
.
Wit
hin
th
ese
allo
cati
on
s, 9
9 in
stit
uti
on
s to
da
te h
ave
re
ceiv
ed
qu
ota
s to
talli
ng
ove
r R
MB
30
0 b
illio
n, m
ost
ly in
Ho
ng
Ko
ng
.
Ce
ntr
e
Cle
ari
ng
ba
nk
D
ate
an
no
un
ce
dR
QF
II a
llo
ca
tio
n (
RM
B b
illi
on
)
Ho
ng
Ko
ng
B
an
k o
f C
hin
aD
ec
20
11
27
0
Taip
ei
Ba
nk
of
Ch
ina
Jan
20
13
10
0*
Sin
ga
po
re
ICB
CO
ct
20
13
50
v
Lo
nd
on
C
hin
a C
on
stru
cti
on
Ba
nk
Oc
t 2
01
38
0
Pa
ris
Ba
nk
of
Ch
ina
Ma
r 2
01
48
0
Fra
nkf
urt
B
an
k o
f C
hin
aJu
l 2
01
48
0
Se
ou
l B
an
k o
f C
om
mu
nic
ati
on
sJu
l 2
01
48
0
Qa
tar
ICB
CN
ov
20
14
30
Toro
nto
IC
BC
No
v 2
01
45
0
Ku
ala
Lu
mp
ur
Ye
t to
be
de
sig
na
ted
No
v 2
01
4N
/A
Au
stra
lia
Ba
nk
of
Ch
ina
No
v 2
01
45
0
Ce
ntr
e
Nu
mb
er
of
org
an
isa
tio
ns
Cu
mu
lati
ve
Ap
pro
ve
d Q
uo
ta (
RM
B b
illi
on
)
Ho
ng
Ko
ng
7
92
70
.0
Sin
ga
po
re
91
2.3
Lo
nd
on
7
12
.2
Pa
ris
26
.0
Se
ou
l 2
4.0
To
tal
99
30
4.5
20
11
• R
QF
II s
ch
em
e e
sta
bli
she
d i
n H
on
g K
on
g
• In
itia
l in
ve
stm
en
t q
uo
ta o
f R
MB
20
bil
lio
n
• O
nly
su
bsi
dia
rie
s o
f C
hin
a-b
ase
d i
nst
itu
tio
ns
co
uld
ap
ply
un
de
r th
e R
QF
II
Ma
y 2
01
2A
dd
itio
na
l R
MB
50
bil
lio
n i
nv
est
me
nt
qu
ota
gra
nte
d f
or
the
la
un
ch
of
RQ
FII
A-s
ha
re E
TF
s
Jan
ua
ry 2
01
3R
QF
II s
ch
em
e w
as
exp
an
de
d t
o T
aiw
an
wit
h t
ota
l q
uo
ta o
f R
MB
10
0 b
illi
on
Mid
-20
13
RQ
FII
ru
les
rev
ise
d t
o:
• E
xpa
nd
th
e s
co
pe
of
eli
gib
le a
pp
lic
an
ts a
nd
pe
rmit
ted
in
ve
stm
en
t
• R
eq
uir
e R
QF
IIs
to o
pe
n o
nsh
ore
sp
ec
ial
ac
co
un
ts d
esi
gn
ate
d f
or
sto
ck
exc
ha
ng
e t
rad
ing
,
inte
r-b
an
k b
on
d m
ark
et
tra
din
g a
nd
sto
ck
ind
ex
futu
res
tra
din
g
July
an
d O
cto
be
r 2
01
3R
QF
II w
as
exp
an
de
d t
o S
ing
ap
ore
an
d L
on
do
n w
ith
all
oc
ate
d q
uo
ta o
f R
MB
50
bil
lio
n
an
d R
MB
80
bil
lio
n r
esp
ec
tiv
ely
Ma
rch
20
14
RQ
FII
wa
s e
xpa
nd
ed
to
Fra
nc
e w
ith
qu
ota
of
RM
B8
0 b
illi
on
No
ve
mb
er
20
14
Ch
AF
TA a
nn
ou
nc
ed
; Au
stra
lia
wa
s g
ran
ted
RM
B5
0 b
illi
on
un
de
r R
QF
II
TO
DA
TE
, 99
IN
ST
ITU
TIO
NS
HA
VE
RE
CE
IVE
D Q
UO
TAS
TO
TAL
LIN
G I
N E
XC
ES
S O
F R
MB
30
0 B
ILL
ION
45
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
2 –
Au
stra
lia
n o
pp
ort
un
itie
s fr
om
th
e C
hA
FTA
FIG
UR
E 2
8: O
VE
RV
IEW
OF
RQ
FII
PR
OG
RA
M R
ES
TR
ICT
ION
S A
ND
CO
NS
IDE
RA
TIO
N
So
urc
e: T
he
Inve
stm
ent
Law
yer,
Vo
l 21
, No
. 8 A
ug
ust
20
14
For
Au
stra
lian
fin
anci
al in
stit
uti
on
s se
eki
ng
to
par
tici
pat
e in
th
e R
QF
II p
rog
ram
, un
de
rsta
nd
ing
th
e lo
ck-u
p p
eri
od
, pe
rmit
ted
fre
qu
en
cy
for
the
re
pat
riat
ion
of
fun
ds,
an
d t
he
ab
ility
to
re
cyc
le t
he
inve
stm
en
t q
uo
ta g
ran
ted
will
be
imp
ort
ant
fro
m a
liq
uid
ity
man
age
me
nt
pe
rsp
ect
ive
in r
ela
tio
n t
o t
he
fu
nd
clie
nts
. In
vest
me
nt
stra
teg
y an
d o
bje
ctiv
es
will
like
ly r
eq
uir
e d
ep
osi
t/yi
eld
solu
tio
ns,
as
we
ll as
ris
k h
ed
gin
g id
eas
. Fin
ally
, RM
B fo
reig
n e
xch
ang
e r
isk
man
age
me
nt
may
als
o b
e r
ele
van
t fo
r ce
rtai
n f
un
d c
lien
ts.
Re
gu
lato
rs
CS
RC
SA
FE
PB
OC
• A
pp
rov
es
RQ
FII
sta
tus
• R
eg
ula
tes
inv
est
me
nts
by
RQ
FII
s
Mo
nit
ors
an
d r
eg
ula
tes
rep
atr
iati
on
/re
mit
tan
ce
of
RM
B f
un
ds
Ap
pro
ve
s a
nd
all
oc
ate
s R
QF
II
qu
ota
• R
eg
ula
tes
on
sho
re
RM
B a
cc
ou
nts
• R
eg
ula
tes
inv
est
me
nt
by
RQ
FII
s
Eli
gib
le a
pp
lic
an
ts
Sub
sid
iari
es in
Rel
evan
t Ju
risd
icti
on
s o
f:
• P
RC
fu
nd
ma
na
ge
me
nt
co
mp
an
ies
• P
RC
se
cu
riti
es
co
mp
an
ies
• P
RC
co
mm
erc
ial
ba
nks
• P
RC
in
sura
nc
e c
om
pa
nie
s
Fin
anci
al in
stit
uti
on
s w
ith
a p
rin
cip
al p
lace
of b
usi
nes
s in
th
at R
elev
ant
Juri
sdic
tio
n t
hat
hav
e:
• O
bta
ine
d a
n a
sse
t m
an
ag
em
en
t li
ce
nse
iss
ue
d b
y a
re
gu
lato
r in
th
e R
ele
va
nt
Juri
sdic
tio
n; a
nd
• A
lre
ad
y c
on
du
cte
d r
ele
va
nt
ass
et
ma
na
ge
me
nt
bu
sin
ess
*
*No
str
ict
def
init
ion
of
the
tra
ck r
eco
rd is
req
uir
ed
Ap
pli
ca
tio
n p
roc
ess
• C
SR
C w
ill
ma
ke
de
cis
ion
wit
hin
60
da
ys
of
rec
eiv
ing
all
re
qu
ire
d d
oc
um
en
ts^
• S
AF
E w
ill
ap
pro
ve
in
ve
stm
en
t q
uo
ta w
ith
in 6
0 w
ork
ing
da
ys
of
rec
eiv
ing
all
re
qu
ire
d d
oc
um
en
ts
^In
pra
ctic
e, t
he
CS
RC
typ
ica
lly
take
s 3
-4 m
on
ths
to r
evi
ew
an
d a
pp
rove
RQ
FII
lice
nse
Do
min
an
t C
urr
en
cy
RM
B (
no
on
sho
re F
X c
on
ve
rsio
n r
eq
uir
ed
)
Pe
rmit
ted
in
ve
stm
en
ts
To in
vest
in t
he
follo
win
g R
MB-
den
om
inat
ed fi
nan
cial
inst
rum
ents
wit
hin
th
e ap
pro
ved
inve
stm
ent
qu
ota
:
• S
toc
ks, b
on
ds
an
d w
arr
an
ts t
rad
ed
or
tra
nsf
err
ed
on
sto
ck
exc
ha
ng
es;
• F
ixe
d i
nc
om
e p
rod
uc
ts t
rad
ed
on
th
e i
nte
rba
nk
bo
nd
ma
rke
t**;
• S
ec
uri
tie
s in
ve
stm
en
t fu
nd
s;
• S
toc
k-in
de
x fu
ture
s; a
nd
• O
the
r fi
na
nc
ial
inst
rum
en
ts a
llo
we
d b
y t
he
CS
RC
(in
clu
din
g t
he
su
bsc
rip
tio
n o
f a
dd
itio
na
l sh
are
iss
ue
s, r
igh
t is
sue
s, I
PO
of
sha
res;
an
d I
PO
of
co
nv
ert
ible
bo
nd
s)
** O
nly
pri
or
ap
pro
val o
f th
e P
BO
C is
req
uir
ed
Sh
are
ho
ldin
g r
est
ric
tio
ns
• A
sin
gle
fo
reig
n i
nv
est
or
sha
ll n
ot
ho
ld t
hro
ug
h a
QF
II/R
QF
II m
ore
th
an
10
% o
f th
e t
ota
l sh
are
s
of
an
in
div
idu
al
list
ed
co
mp
an
y
• T
he
to
tal
A-s
ha
res
of
an
in
div
idu
al
list
ed
co
mp
an
y h
eld
by
all
fo
reig
n i
nv
est
ors
sh
all
no
t e
xce
ed
30
% o
f it
s to
tal
ass
ets
Inv
est
me
nt
qu
ota
rest
ric
tio
ns
NA
De
ad
lin
e f
or
inv
est
me
nt
pro
ce
ed
s to
be
re
mit
ted
• O
pe
n-e
nd
ed
fu
nd
s : N
ot
spe
cif
ied
• 6
mo
nth
s a
fte
r th
e i
nv
est
me
nt
qu
ota
is
ap
pro
ve
d (
oth
er
tha
n o
pe
n-e
nd
ed
fu
nd
s ^
^)
^^
Gen
era
l def
init
ion
of
op
en-e
nd
ed f
un
ds
ap
pli
es (
i.e. p
ub
licl
y-o
ffer
ed f
un
ds
list
ed o
n m
ajo
r st
ock
exc
ha
ng
es).
Th
is s
ho
uld
be
dis
tin
gu
ish
ed f
rom
th
e d
efin
itio
n o
f “o
pen
-en
ded
Ch
ina
fu
nd
” in
QF
II r
ule
s
Min
imu
m i
nv
est
me
nt
req
uir
em
en
t
NA
Lo
ck
-up
pe
rio
d
• O
pe
n-e
nd
ed
fu
nd
s: n
o l
oc
k-u
p p
eri
od
• O
the
r R
QF
IIs:
1 y
ea
r
Th
e l
oc
k-u
p p
eri
od
is
de
em
ed
to
co
mm
en
ce
fro
m t
he
ea
rlie
r o
f th
e d
ate
: (i)
wh
en
th
e i
nv
est
me
nt
ca
pit
al
is f
ull
y r
em
itte
d i
nto
th
e o
nsh
ore
de
sig
ne
d a
cc
ou
nt;
an
d (
ii)
the
en
d o
f si
x m
on
ths
aft
er
the
in
ve
stm
en
t
qu
ota
is
ap
pro
ve
d i
f th
e i
nv
est
me
nt
ca
pit
al
ha
s n
ot
be
en
fu
lly
re
mit
ted
wit
hin
th
e p
resc
rib
ed
de
ad
lin
e.
Re
cy
cli
ng
of
inv
est
me
nt
qu
ota
s
• O
pe
n-e
nd
ed
fu
nd
s: Y
es,
as
lon
g a
s th
e n
et
am
ou
nt
of
inv
est
me
nt
ca
pit
al
rem
itte
d i
nto
Ch
ina
is
wit
hin
th
e
inv
est
me
nt
qu
ota
• O
the
r R
QF
IIs:
No
Fu
rth
er
qu
ota
sP
erm
itte
d t
o a
pp
ly f
or
furt
he
r q
uo
ta o
nc
e 8
0%
of
the
cu
rre
nt
qu
ota
ha
s b
ee
n u
tili
sed
Re
pa
tria
tio
n
Op
en-e
nd
ed fu
nd
s:
• M
ay
re
pa
tria
te o
r re
mit
on
a d
ail
y b
asi
s
• M
ay
re
inv
est
wit
hin
in
ve
stm
en
t q
uo
ta p
erm
itte
d
Oth
er R
QFI
Is:
• M
ay
re
pa
tria
te o
r re
mit
on
a m
on
thly
ba
sis
aft
er
the
exp
iry
of
the
lo
ck-
up
pe
rio
d
• S
AF
E p
re-a
pp
rov
al
is n
ot
req
uir
ed
• M
ay
no
t re
-in
ve
st o
r re
cy
cle
th
e r
em
itte
d c
ap
ita
l a
nd
th
e i
nv
est
me
nt
qu
ota
wil
l b
e r
ed
uc
ed
ac
co
rdin
gly
Mo
nth
ly r
ep
atr
iati
on
rest
ric
tio
ns
NA
RQ
FII
IN
MO
RE
DE
TAIL
47
47
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
SE
CT
ION
3
WH
AT
AU
ST
RA
LIA
N B
US
INE
SS
ES
SH
OU
LD
BE
DO
ING
Plan
ning
is e
ssen
tial.
AN
Z hi
ghlig
ht h
ow to
sta
rt a
nd w
hat t
o th
ink
abou
t to
exec
ute
on th
e b
enefi
ts
that
the
ChA
FTA
can
brin
g.
Th
e C
hA
FTA
will
no
t o
nly
lea
d t
o 9
5%
of
go
od
s a
nd
se
rvic
es
be
ing
ta
riff
fre
e o
ver
tim
e, b
ut
it w
ill p
rove
to
be
a c
ata
lyst
fo
r
Au
stra
lian
bu
sin
ess
es
to e
sta
blis
h a
bu
yin
g o
r se
llin
g r
ela
tio
nsh
ip w
ith
ou
r la
rge
st t
rad
ing
pa
rtn
er.
In t
he
pre
vio
us
sec
tio
n
we
ide
nti
fie
d a
nu
mb
er
of
ind
ust
rie
s th
at
are
like
ly t
o r
ece
ive
sig
nifi
can
t b
en
efi
ts. F
or
som
e o
f th
ese
ind
ust
rie
s, s
elli
ng
into
Ch
ina
will
no
t o
nly
be
ch
ea
pe
r a
nd
ea
sie
r, b
ut
the
y w
ill a
lso
hav
e t
he
ca
pa
city
to
se
t u
p o
pe
rati
on
s o
r b
uy
exi
stin
g o
pe
rati
on
s
to d
eve
lop
an
on
th
e g
rou
nd
pre
sen
ce. K
ey
con
sid
era
tio
ns
for
do
ing
bu
sin
ess
wit
h o
r in
Ch
ina
are
hig
hlig
hte
d b
elo
w.
Ke
y C
on
sid
era
tio
ns
Exp
ortin
g to
Chi
na
Au
stra
lia h
as
sig
ne
d n
ine
FTA
s w
ith
oth
er
na
tio
ns,
incl
ud
ing
Ch
ina
, sin
ce 2
00
5. D
esp
ite
th
is, o
nly
19
% o
f e
xpo
rte
rs h
ave
ta
ken
ad
va
nta
ge
of
the
se F
TAs.
Und
erst
and
the
ChA
FTA
and
wha
t it m
eans
for y
ou
Un
de
rsta
nd
ho
w t
he
Ch
AFT
A w
ill im
pac
t yo
ur
ind
ust
ry, b
oth
in t
erm
s o
f op
en
ing
up
mar
ket
op
po
rtu
nit
ies
into
Ch
ina
and
/or
incr
eas
ed
co
mp
eti
tio
n lo
cally
in A
ust
ralia
.
Th
e b
en
efi
ts u
nd
er
the
Ch
AF
TA a
re n
ot
au
tom
ati
c, s
o it
is im
po
rta
nt
to r
ese
arc
h t
he
be
ne
fits
th
at
are
av
aila
ble
an
d t
o e
nsu
re y
ou
r b
usi
ne
ss is
ma
xim
isin
g
the
op
po
rtu
nit
ies.
Fo
r e
xam
ple
, yo
u n
ee
d t
o r
eg
iste
r yo
ur
pro
du
cts
an
d o
bta
in a
Ce
rtifi
cate
of
Ori
gin
in o
rde
r to
acc
ess
ta
riff
re
du
cti
on
s.
AN
Z a
dv
an
tag
es
Reso
urce
s
FTA
s a
re lo
ng
an
d c
om
ple
x le
ga
l do
cum
en
ts. T
o a
ssis
t A
ust
ralia
n b
usi
ne
sse
s, A
NZ
ha
s p
art
ne
red
wit
h t
he
Exp
ort
Co
un
cil o
f A
ust
ralia
(E
CA
) to
de
velo
p
a s
imp
le o
nlin
e F
TA t
oo
l (w
ww
.fta
too
l.co
m.a
u)
wh
ich
dis
pla
ys t
he
ke
y p
oin
ts o
f e
ach
FTA
in “p
lain
En
glis
h” a
nd
pro
vid
es
spe
cifi
c in
sig
hts
on
ho
w t
o t
ake
ad
va
nta
ge
of
the
re
lev
an
t F
TAs
rela
tin
g t
o y
ou
r in
du
stry
/pro
du
ct.
Und
erst
and
the
Chi
nese
cul
ture
, cus
tom
s an
d b
usin
ess
etiq
uett
e
So
me
fo
reig
n c
om
pa
nie
s a
re u
nsu
cce
ssfu
l wh
en
exp
an
din
g in
to C
hin
a b
eca
use
th
ey
do
n’t
lea
rn t
he
ba
sics
. Bu
sin
ess
es
sho
uld
de
velo
p r
ela
tio
nsh
ips
wit
h o
rga
nis
ati
on
s lik
e t
he
Au
stra
lia C
hin
a B
usi
ne
ss C
ou
nci
l (A
CB
C)
or
loca
l Au
stra
lian
Ch
ine
se b
usi
ne
ss b
od
ies,
as
the
y ca
n o
fte
n b
e y
ou
r b
est
ad
vis
ors
.
So
me
ke
y b
asi
cs in
clu
de
:
• B
usi
ne
ss c
ard
s ar
e im
po
rtan
t. C
reat
e a
do
ub
le s
ide
d c
ard
wit
h y
ou
r d
eta
ils in
Ch
ine
se o
n t
he
re
vers
e s
ide
– w
he
n m
ee
tin
g C
hin
ese
par
tie
s, a
lway
s o
ffe
r yo
ur
card
usi
ng
bo
th h
and
s w
ith
th
e C
hin
ese
sid
e f
ace
up
. It’s
co
nsi
de
red
a s
ign
of
resp
ect
to
sp
en
d a
few
mo
me
nts
exa
min
ing
th
e b
usi
ne
ss c
ard
s yo
u r
ece
ive
.
• C
hin
ese
na
min
g c
on
ven
tio
ns
are
diff
ere
nt.
In w
ritt
en
fo
rm, s
urn
am
es
are
pla
ced
firs
t, f
ollo
we
d b
y g
ive
n n
am
es
e.g
. Mr
Zh
an
g Y
on
g s
ho
uld
be
ad
dre
sse
d
as
Mr
Zh
an
g.
• It
is c
ust
om
ary
to
exc
ha
ng
e s
ma
ll a
nd
ine
xpe
nsi
ve g
ifts
at
me
eti
ng
s. W
he
n y
ou
are
inv
ite
d t
o a
Ch
ine
se b
usi
ne
ss m
ee
tin
g, s
ma
ll g
ifts
wit
h a
n A
ust
ralia
n
the
me
to
exc
ha
ng
e w
ill b
e w
arm
ly r
ece
ive
d.
• B
usi
ne
ss s
low
s d
ow
n f
or
alm
ost
a m
on
th a
rou
nd
Ch
ine
se lu
na
r N
ew
Ye
ar.
Tim
ing
var
ies
fro
m y
ear
to
ye
ar b
ut
the
ho
liday
pe
rio
d g
en
era
lly fa
lls a
rou
nd
late
Jan
uar
y/Fe
bru
ary
and
bu
sin
ess
is u
sual
ly n
ot
con
du
cte
d d
uri
ng
th
is p
eri
od
.
AN
Z a
dv
an
tag
es
Reso
urce
s
Th
e A
NZ
Asi
a P
aci
fic
Co
nn
ec
t w
eb
site
(w
ww
.an
z.co
m/a
sia
pa
cifi
c) is
a s
ou
rce
of
info
rma
tio
n a
nd
pro
vid
es
insi
gh
ts f
or
con
du
cti
ng
bu
sin
ess
in 2
9 m
ark
ets
acr
oss
Asi
a P
aci
fic.
Und
erst
and
the
Chi
nese
mar
ket
Ch
ina
is c
han
gin
g a
t a
rap
id p
ace
so
yo
u n
ee
d t
o c
on
stan
tly
en
sure
yo
u h
ave
up
to
dat
e m
arke
t in
form
atio
n.
Ch
ina
is n
ot
ho
mo
ge
ne
ou
s. T
he
re a
re 3
4 p
rovi
nce
s in
Ch
ina,
eac
h w
ith
th
eir
ow
n u
niq
ue
ch
arac
teri
stic
s, n
ee
ds
and
co
nsu
me
r ap
pe
tite
. It
is b
est
to
tak
e
a ci
ty o
r p
rovi
nci
al v
iew
an
d e
nte
r th
e m
arke
t vi
a a
par
ticu
lar
pro
vin
ce o
r ci
ty r
ath
er
than
ass
um
ing
th
at “C
hin
a” is
yo
ur
targ
et
mar
ket.
Co
nsi
de
r ti
er
2 a
nd
3 C
hin
ese
cit
ies.
Man
y b
usi
ne
sse
s lo
ok
to S
han
gh
ai a
nd
Be
ijin
g a
s th
eir
en
try
po
ints
giv
en
po
pu
lari
ty a
nd
siz
e, (
po
pu
lati
on
s o
f 2
4 a
nd
20
mill
ion
pe
op
le r
esp
ect
ive
ly),
ho
we
ver
man
y o
the
r ci
tie
s an
d r
eg
ion
s ac
ross
Ch
ina
off
er
sub
stan
tial
mar
ket
op
po
rtu
nit
ies.
Fo
r e
xam
ple
, th
e g
row
ing
We
ste
rn
Ch
ina
city
of
Ch
en
gd
u h
as a
po
pu
lati
on
of
14
mill
ion
an
d c
om
pe
titi
on
can
be
less
inte
nse
for
the
firs
t ti
me
en
tran
t.
Be
ing
su
cce
ssfu
l in
Ch
ina
is n
ot
all a
bo
ut
the
pri
ce. T
he
tar
iff r
ed
uct
ion
s u
nd
er
the
Ch
AF
TA m
ake
Au
stra
lian
go
od
s an
d s
erv
ice
s m
ore
co
mp
eti
tive
, bu
t C
hin
a’s
rap
idly
gro
win
g m
idd
le-c
lass
co
nsu
me
rs a
re s
ee
kin
g “c
lean
, gre
en
” ag
ricu
ltu
ral p
rod
uce
, an
d q
ual
ity
bra
nd
nam
e p
rod
uct
s w
ith
ing
en
uit
y an
d a
re p
rep
are
d
to p
ay fo
r th
em
.
Be
co
nsc
iou
s o
f m
arke
t n
uan
ces.
Wh
at is
po
pu
lar
in A
ust
ralia
may
no
t b
e f
avo
ure
d in
Ch
ina,
so
tak
e t
he
tim
e t
o u
nd
ers
tan
d t
he
Ch
ine
se c
on
sum
er
and
be
pre
par
ed
to
ad
apt
you
r p
rod
uct
, pac
kag
ing
, ad
vert
isin
g c
amp
aig
n e
tc. f
or
the
Ch
ine
se m
arke
t.
Ch
oo
se t
he
rig
ht
par
tne
rs. L
oca
l in
-mar
ket
con
tact
s ca
n b
e m
ore
imp
ort
ant
than
pro
du
ct a
nd
pri
ce. S
har
e y
ou
r b
usi
ne
ss p
lan
wit
h lo
cal r
ep
rese
nta
tive
wh
o u
nd
ers
tan
d
mar
ket
tre
nd
s an
d e
con
om
ic c
on
dit
ion
s in
diff
ere
nt
reg
ion
s ac
ross
Ch
ina.
Do
n’t
ass
um
e y
ou
can
op
era
te y
ou
r C
hin
a b
usi
ne
ss r
em
ote
ly f
rom
Au
stra
lia. H
avin
g lo
cal e
mp
loye
es
sho
ws
you
r co
mm
itm
en
t to
th
e C
hin
ese
mar
ket
and
is im
po
rtan
t fo
r yo
ur
bra
nd
pre
sen
ce a
nd
vis
ibili
ty.
Tre
at y
ou
r C
hin
a st
rate
gy
as a
lon
g t
erm
pla
y. E
mb
ed
din
g y
ou
r p
rod
uct
an
d in
cre
asin
g s
ale
s ta
kes
tim
e a
nd
co
mm
itm
en
t.
AN
Z a
dv
an
tag
es
Cap
abili
ty a
nd e
xper
ienc
e co
unts
AN
Z is
th
e o
nly
Au
stra
lian
ba
nk
wit
h C
lien
t In
sig
hts
an
d E
con
om
ics
tea
ms
in A
sia
, allo
win
g u
s to
pro
vid
e o
ur
cust
om
ers
wit
h lo
cally
pro
du
ced
re
sea
rch
pa
pe
rs a
nd
insi
gh
ts in
to t
he
Ch
ine
se e
con
om
y a
nd
ind
ust
rie
s.
AN
Z’s
60
0 B
an
kers
on
th
e g
rou
nd
acr
oss
Asi
a P
aci
fic
are
th
ere
to
ass
ist
AN
Z c
ust
om
ers
loca
lly w
ith
th
eir
ba
nki
ng
re
qu
ire
me
nts
, an
d m
ore
.
Test
the
Chi
nese
Mar
ket u
sing
e-c
omm
erce
pla
tfor
ms
Ph
ysic
ally
se
llin
g y
ou
r p
rod
uc
t/se
rvic
e in
Ch
ina
ca
n b
e e
xpe
nsi
ve a
nd
est
ab
lish
ing
dis
trib
uti
on
ch
an
ne
ls c
an
ta
ke t
ime
.
An
ea
sie
r, fa
ste
r a
nd
mo
re c
ost
eff
ec
tive
way
to
te
st t
he
Ch
ine
se m
ark
et
an
d u
nd
ers
tan
d h
ow
to
be
st m
ark
et
you
r p
rod
uc
t to
Ch
ine
se b
uye
rs is
on
line
.
Ch
ine
se c
on
sum
ers
are
te
chn
olo
gy
sav
vy,
an
d a
re a
vid
use
rs o
f C
hin
ese
so
cia
l me
dia
e.g
. We
cha
t, W
eib
o (
Ch
ine
se v
ers
ion
of
Face
bo
ok)
an
d o
nlin
e
ma
rke
t p
latf
orm
s e
.g. T
ma
ll a
nd
Ta
ob
ao
(C
hin
a’s
on
line
de
pa
rtm
en
t st
ore
s, s
imila
r to
Am
azo
n in
th
e U
S).
Wh
en
usi
ng
ele
ctr
on
ic p
latf
orm
s e
nsu
re t
ha
t yo
ur
site
is w
ritt
en
in C
hin
ese
. Usi
ng
a q
ua
lifie
d p
rofe
ssio
na
l tra
nsl
ato
r is
imp
era
tive
to
ma
ke s
ure
yo
ur
pro
du
ct
is w
ell
rep
rese
nte
d.
AN
Z a
dv
an
tag
es
Rela
tions
hip
s ar
e ke
y
We
hav
e d
eve
lop
ed
re
lati
on
ship
s w
ith
ke
y o
rga
nis
ati
on
s in
Au
stra
lia, l
ike
Ve
cci a
nd
Au
stra
lia P
ost
, to
he
lp o
ur
cust
om
ers
acc
ess
th
e C
hin
ese
ma
rke
t
via
th
e e
lec
tro
nic
ch
an
ne
ls a
nd
pla
tfo
rms
the
se o
rga
nis
ati
on
s o
ffe
r.
Ke
y C
on
sid
era
tio
ns
DO
N’T
AS
SU
ME
YO
U C
AN
OP
ER
AT
E Y
OU
R
CH
INA
BU
SIN
ES
S R
EM
OT
ELY
FR
OM
AU
ST
RA
LIA
49
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
CO
NS
IDE
R H
IRIN
G A
US
TR
AL
IAN
EM
PLO
YE
ES
WIT
H C
HIN
ES
E H
ER
ITA
GE
Se
cti
on
3 -
Wh
at
Au
stra
lia
n b
usi
ne
sse
s sh
ou
ld b
e d
oin
g
Are
you
Chi
na/e
xpor
t rea
dy?
Succ
ess
fully
en
teri
ng
th
e C
hin
ese
mar
ket
req
uire
s a
lon
g t
erm
co
mm
itm
en
t, fr
eq
ue
nt
trav
el a
nd
ab
ility
to
co
mm
un
icat
e. B
efo
re e
xpan
din
g in
to C
hin
a e
nsu
re y
ou
:
• U
nd
ers
tan
d t
he
Ch
ine
se r
eg
ula
tio
ns
go
vern
ing
yo
ur
ind
ust
ry o
r in
vest
me
nt
and
fam
iliar
ise
yo
urs
elf
wit
h r
ele
van
t C
hA
FTA
pro
visi
on
s. E
stab
lish
ing
th
e
app
rop
riat
e e
xpo
rt li
cen
ses
can
als
o b
e a
len
gth
y p
roce
ss.
• H
ave
a w
eb
site
in b
oth
En
glis
h a
nd
Ch
ine
se, u
nd
ers
tan
d s
hip
pin
g t
ime
s, c
ust
om
s p
roce
du
res,
est
ablis
h a
pp
rop
riat
e p
rod
uct
de
live
ry a
nd
aft
er
sale
s
serv
ice
me
chan
ism
s to
su
pp
ort
yo
ur
pro
du
ct.
• H
ave
th
e p
roce
ss a
nd
eq
uip
me
nt
in p
lace
to
ad
apt
you
r p
rod
uct
siz
e, p
acka
gin
g, c
olo
ur
etc
. to
su
it t
he
Ch
ine
se m
arke
t, if
ne
ed
ed
.
• E
stab
lish
th
e a
pp
rop
riat
e b
usi
ne
ss a
nd
tax
str
uct
ure
an
d t
ake
ste
ps
to p
rote
ct y
ou
r in
telle
ctu
al p
rop
ert
y fr
om
be
ing
co
pie
d –
use
qu
alifi
ed
leg
al
and
acc
ou
nti
ng
firm
s w
ith
a p
rese
nce
in C
hin
a to
est
ablis
h a
nd
re
vie
w a
ll co
ntr
acts
.
• E
ng
agin
g a
go
od
ag
en
t/d
istr
ibu
tor
in C
hin
a w
ith
loca
l kn
ow
led
ge
of
mar
ket
con
dit
ion
s an
d E
ng
lish
sp
eak
ing
cap
abili
tie
s ca
n r
ed
uce
se
tup
co
sts.
It m
ay b
e b
en
efi
cial
to
hav
e a
Ch
ine
se e
mp
loye
e/a
ge
nt
wh
o c
an a
ssis
t w
he
n la
ng
uag
e c
apab
iliti
es
are
re
qu
ire
d.
AN
Z a
dv
an
tag
es
AN
Z is
re
cog
nis
ed
as
the
lea
din
g t
rad
e a
nd
su
pp
ly c
ha
in b
an
k in
Au
stra
lia, w
ith
tra
de
te
am
s o
n t
he
gro
un
d a
cro
ss A
sia
Pa
cifi
c to
he
lp s
up
po
rt y
ou
r in
itia
l
or
on
go
ing
tra
de
re
qu
ire
me
nts
. AN
Z’s
on
line
tra
de
pla
tfo
rm p
rov
ide
s yo
u w
ith
th
e a
bili
ty t
o in
itia
te, a
me
nd
an
d t
rack
yo
ur
tra
de
tra
nsa
cti
on
s a
nyw
he
re
in t
he
wo
rld
.
For
cust
om
ers
ne
ed
ing
ba
nki
ng
su
pp
ort
in C
hin
a, C
hri
s C
ha
se, A
NZ
’s d
ed
ica
ted
Au
stra
lia/N
Z d
esk
in S
ha
ng
ha
i, a
ssis
ts w
ith
th
e b
an
kin
g n
ee
ds
of
Au
stra
lian
cu
sto
me
rs. H
e is
su
pp
ort
ed
by
loca
l En
glis
h s
pe
aki
ng
re
lati
on
ship
ma
na
ge
rs a
nd
in c
ou
nty
pro
du
ct
spe
cia
lists
.
Sett
ing
up a
bus
ines
s/su
bsi
diar
y in
Chi
na?
Fore
ign
co
mp
an
ies
are
no
t p
erm
itte
d t
o d
o b
usi
ne
ss d
ire
ctl
y in
Ch
ina
wit
ho
ut
a b
usi
ne
ss li
cen
se. A
lth
ou
gh
th
e m
ajo
rity
of
the
Ch
AF
TA f
ocu
ses
on
op
en
ing
tra
de
re
lati
on
ship
s, it
ha
s a
lso
ma
de
it e
asi
er
for
a n
um
be
r o
f se
rvic
e in
du
stri
es
to d
o b
usi
ne
ss in
Ch
ina
via
wh
olly
ow
ne
d s
ub
sid
iari
es.
Be
fore
est
ab
lish
ing
a b
usi
ne
ss p
rese
nce
in C
hin
a y
ou
sh
ou
ld c
on
sid
er:
• Yo
ur
ow
n b
usi
ne
ss m
od
el t
o d
eci
de
wh
ich
on
e o
f th
e f
ou
r p
oss
ible
Fo
reig
n In
vest
or
En
tity
typ
es
of
inco
rpo
rati
on
in C
hin
a b
est
su
its
you
r n
ee
ds.
• W
he
re t
o lo
cate
yo
ur
ba
se o
f o
pe
rati
on
. Diff
ere
nt
citi
es/
pro
vin
ces
off
er
diff
ere
nt
be
ne
fits
like
lab
ou
r p
oo
ls, h
igh
te
ch p
ark
s, lo
cal s
up
po
rt in
clu
din
g
tax
be
ne
fits
, tra
nsp
ort
ati
on
, in
fra
stru
ctu
re e
tc. I
nve
stig
ate
be
ne
fits
ass
oci
ate
d w
ith
op
era
tin
g f
rom
th
e S
FT
Z w
hic
h w
as
est
ab
lish
ed
in 2
01
3.
• E
sta
blis
hin
g a
go
od
co
nn
ec
tio
n/r
ela
tio
nsh
ip (
“Gu
an
xi”)
wit
h lo
cal C
hin
ese
go
vern
me
nt
offi
cia
ls a
nd
en
terp
rise
s w
hic
h is
ne
cess
ary
fo
r o
pe
rati
ng
succ
ess
fully
in C
hin
a.
• C
hin
ese
La
bo
ur
Law
re
qu
ire
me
nts
. Un
like
Au
stra
lia, m
ed
ica
l in
sura
nce
, pe
nsi
on
, un
em
plo
yme
nt
insu
ran
ce, a
nd
ho
usi
ng
fu
nd
s a
re le
ga
lly r
eq
uir
ed
wh
en
yo
u h
ave
em
plo
yee
s in
Ch
ina
.
• T
he
tim
e, s
tep
s an
d c
ost
ass
oci
ate
d w
ith
ob
tain
ing
a b
usi
ne
ss li
cen
se in
Ch
ina.
De
pe
nd
ing
on
yo
ur
ind
ust
ry a
nd
loca
tio
n, C
hin
ese
law
typ
ical
ly r
eq
uir
es
shar
eh
old
ers
to
inje
ct a
nd
ho
ld c
ash
eq
uit
y. T
his
am
ou
nt
can
be
su
bst
anti
al, f
or
exa
mp
le fo
reig
n m
anu
fact
ure
rs o
pe
rati
ng
in S
han
gh
ai a
re r
eq
uir
ed
to h
old
US
D2
00
,00
0 in
re
gis
tere
d c
apit
al. T
he
re a
re a
uth
ori
zed
ag
en
cie
s th
at c
an h
elp
fore
ign
inve
sto
rs n
avig
ate
th
e e
stab
lish
me
nt
req
uir
em
en
ts.
Reso
urce
s av
aila
ble
to y
ou
Th
ere
are
va
rio
us
Go
vern
me
nt
bo
die
s e
sta
blis
he
d t
o s
up
po
rt A
ust
ralia
n b
usi
ne
sse
s. E
FIC
, th
e E
xpo
rt C
ou
nci
l, Tr
ad
eS
tart
an
d A
ust
rad
e c
an
pro
vid
e
ass
ista
nce
an
d a
dv
ice
ab
ou
t e
xpo
rtin
g t
o C
hin
a a
nd
wh
at
is r
eq
uir
ed
to
su
cce
ed
. Th
ese
org
an
isa
tio
ns
als
o m
ain
tain
loca
l on
th
e g
rou
nd
offi
ces/
rep
rese
nta
tio
n a
cro
ss C
hin
a.
Co
nta
ct
you
r S
tate
an
d F
ed
era
l Go
vern
me
nt
offi
ces
an
d a
sk a
bo
ut
fin
an
cia
l gra
nts
an
d t
rad
e m
issi
on
s. T
he
re a
re g
ran
ts a
va
ilab
le t
o a
ssis
t A
ust
ralia
n
bu
sin
ess
es
exp
ort
or
est
ab
lish
an
off
sho
re p
rese
nce
an
d t
he
Go
vern
me
nt
reg
ula
rly
run
tra
de
mis
sio
ns
to C
hin
a o
ffe
rin
g A
ust
ralia
n b
usi
ne
sse
s th
e
op
po
rtu
nit
y to
ga
in in
co
un
try
bu
sin
ess
exp
eri
en
ce in
Ch
ina
.
In a
dd
itio
n t
o G
ove
rnm
en
t a
ssis
tan
ce, i
t co
uld
be
he
lpfu
l to
sp
ea
k w
ith
oth
er
bu
sin
ess
es
op
era
tin
g in
Ch
ina
, co
nta
cti
ng
pri
va
te o
rga
nis
ati
on
like
th
e
Au
stra
lia C
hin
a B
usi
ne
ss C
ou
nci
l may
be
a g
oo
d p
lace
to
sta
rt.
AN
Z a
dv
an
tag
es
Use
you
r net
wor
ks
AN
Z’s
lon
g-s
tan
din
g p
rese
nce
in C
hin
a m
ean
s th
at t
he
ban
k h
as b
ee
n a
ble
to
est
ablis
h s
tro
ng
re
lati
on
ship
s w
ith
ke
y th
ird
par
ty m
arke
t e
ntr
y, s
ou
rcin
g, a
cco
un
tin
g,
taxa
tio
n, a
nd
log
isti
cs p
rovi
de
rs. W
e c
an in
tro
du
ce o
ur
cust
om
ers
to
th
e r
igh
t p
eo
ple
in C
hin
a to
pro
vid
e h
olis
tic
sup
po
rt fo
r tr
ade
an
d m
arke
t e
ntr
y.
Hiri
ng C
hine
se s
taff
Co
nsi
de
r h
irin
g A
ust
ralia
n e
mp
loye
es
wit
h C
hin
ese
he
rita
ge
an
d la
ng
ua
ge
ca
pa
bili
ty t
o a
ssis
t a
t b
usi
ne
ss m
ee
tin
gs,
inst
ea
d o
f re
lyin
g o
n t
ran
sla
tors
.
You
r e
mp
loye
e is
mo
re li
kely
to
ac
t in
yo
ur
inte
rest
.
Ch
ine
se w
ho
hav
e li
ved
, stu
die
d a
nd
/or
wo
rke
d in
bo
th c
ou
ntr
ies
are
fa
mili
ar
wit
h b
oth
ma
rke
ts, a
nd
ca
n p
rov
ide
insi
gh
t in
to t
he
Ch
ine
se c
ult
ure
wh
ilst
ap
pre
cia
tin
g h
ow
th
ing
s a
re d
on
e in
Au
stra
lia.
Use
Ren
min
bi (
RMB)
for t
rade
tran
sact
ions
His
tori
cally
tra
de
flo
ws
wit
h C
hin
a w
ere
se
ttle
d in
US
D, h
ow
eve
r th
is is
ch
an
gin
g w
ith
th
e in
tern
ati
on
alis
ati
on
of
RM
B b
ein
g a
n in
teg
ral p
art
of
Ch
ina’
s
fin
an
cia
l re
form
str
ate
gy.
As
RM
B b
eco
me
s th
e m
ajo
r in
voic
ing
cu
rre
nc
y in
Ch
ina
, yo
u m
ay w
an
t to
co
nsi
de
r tr
ad
ing
wit
h C
hin
ese
co
un
terp
art
ies
in R
MB
. Pay
ing
an
d r
ece
ivin
g
fun
ds
in R
MB
do
esn
’t m
ea
n t
ha
t yo
u n
ee
d t
o s
et
up
an
acc
ou
nt
in C
hin
a, a
s yo
u c
an
op
en
an
d o
pe
rate
a R
MB
fo
reig
n c
urr
en
cy
acc
ou
nt
in A
ust
ralia
.
Th
ere
are
so
me
ke
y a
dv
an
tag
es
to t
rad
ing
in R
MB
:
• D
isco
un
ts o
f u
p t
o 5
%: I
t is
est
ima
ted
th
at
Ch
ine
se c
om
pa
nie
s a
dd
up
to
5%
to
th
eir
qu
ote
s in
a f
ore
ign
cu
rre
nc
y to
ca
ptu
re t
he
co
st o
f b
ea
rin
g t
he
exc
ha
ng
e r
ate
ris
k. If
RM
B is
use
d, t
he
ad
dit
ion
al c
ost
s ca
n b
e r
em
ove
d.
• E
xte
nd
pay
me
nt
term
s to
21
0 d
ays:
Fo
reig
n c
urr
en
cy
invo
ice
s (i
mp
ort
/exp
ort
) w
ith
pay
me
nt
term
s o
ver
90
day
s in
volv
e a
co
mp
lex
ad
min
istr
ati
on
pro
cess
re
qu
est
ed
by
Ch
ina’
s S
tate
Ad
min
istr
ati
on
of
Fore
ign
Exc
ha
ng
e (
SA
FE
), h
ow
eve
r, se
ttle
me
nts
in R
MB
be
ne
fit
fro
m a
n a
uto
mat
ic e
xte
nsi
on
of
pay
me
nt
term
s u
p t
o 2
10
day
s.
• A
cce
ss t
o w
ide
r cl
ien
t/su
pp
lier
ba
se: T
he
re a
re a
larg
e n
um
be
r o
f C
hin
ese
co
mp
an
ies
no
t ca
pa
ble
of
de
alin
g w
ith
fo
reig
n c
urr
en
cie
s.
Th
ere
fore
, a w
illin
gn
ess
to
se
ttle
in R
MB
ca
n a
llow
yo
u t
o a
cce
ss a
bro
ad
er
ran
ge
of
clie
nts
/su
pp
liers
.
Mo
re d
eta
il in
Sec
tion
4 –
Nav
igat
ing
the
ban
king
mar
ket
AN
Z a
dv
an
tag
es
Cur
renc
y
AN
Z c
ust
om
ers
ca
n o
pe
n a
RM
B a
cco
un
t d
om
icile
d in
Au
stra
lia a
llow
ing
yo
u t
o h
old
an
d t
ran
sac
t in
RM
B (
fro
m A
ust
ralia
) w
ith
ou
t co
nve
rsio
n.
Wh
ere
cu
sto
me
rs w
an
t to
co
nve
rt, o
ur
RM
B c
ap
ab
ility
me
an
s w
e c
an
dir
ec
tly
con
vert
AU
D t
o R
MB
so
AN
Z’s
cu
sto
me
rs g
et
a b
ett
er
exc
ha
ng
e r
ate
(oth
er
ba
nks
co
nve
rt A
UD
to
US
D t
o R
MB
via
a C
hin
ese
co
rre
spo
nd
en
t b
an
k).
AN
Z’s
tra
de
fin
an
ce p
rod
uc
ts (
imp
ort
/exp
ort
Le
tte
rs o
f C
red
it, d
ocu
me
nta
ry c
olle
cti
on
s, S
tan
db
y Le
tte
rs o
f C
red
it a
nd
gu
ara
nte
es)
are
als
o a
va
ilab
le in
RM
B.
Ke
y C
on
sid
era
tio
ns
Ke
y C
on
sid
era
tio
ns
51
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Tim
e is
imp
orta
nt, y
ou s
houl
d lo
ok to
act
now
Tari
ff r
ed
uc
tio
ns
are
ph
ase
d in
ove
r a
nu
mb
er
of
yea
rs h
ow
eve
r it
’s b
est
to
be
gin
de
velo
pin
g y
ou
r C
hin
ese
re
lati
on
ship
s/co
ntr
ac
ts n
ow
.
In C
hin
a, r
ela
tio
nsh
ips
are
cri
tica
l to
th
e s
ucc
ess
of
you
r b
usi
ne
ss a
nd
th
ese
ca
n t
ake
co
nsi
de
rab
le t
ime
to
est
ab
lish
.
Be
min
dfu
l th
at
lice
nse
s a
nd
co
mp
an
y st
ruc
ture
s a
lso
invo
lve
len
gth
y e
stab
lish
me
nt
pro
cess
es.
Als
o if
pro
du
ct v
aria
tio
ns
are
ne
ed
ed
to
su
it t
he
Ch
ine
se m
arke
t
you
’ll n
ee
d t
ime
to
mak
e t
he
ne
cess
ary
chan
ge
s w
ith
in y
ou
r b
usi
ne
ss.
Inb
ound
inve
stm
ents
Man
y cu
sto
me
rs w
e s
pe
ak t
o a
re c
on
cern
ed
ab
ou
t th
eir
su
cce
ssio
n p
lan
s an
d a
bili
ty t
o s
ou
rce
fu
nd
ing
, in
clu
din
g e
qu
ity
to s
up
po
rt t
he
ir b
usi
ne
ss o
bje
ctiv
es.
Th
e in
flo
w o
f in
vest
me
nt
fun
ds
fro
m C
hin
ese
inve
sto
rs c
an
he
lp s
olv
e m
an
y o
f th
e fi
na
nci
al i
ssu
es
curr
en
tly
be
ing
fa
ced
by
Au
stra
lian
bu
sin
ess
es.
Due
Dili
genc
e –
Talk
to a
dvis
ors/
spec
ialis
ts th
at h
ave
office
s in
Chi
na
If y
ou
’re a
pp
roa
che
d b
y a
Ch
ine
se in
vest
or
kee
n t
o in
vest
in y
ou
r b
usi
ne
ss, b
e s
ure
to
co
nd
uc
t d
ue
-dili
ge
nce
on
th
e b
ack
gro
un
d o
f th
e in
vest
or.
Ch
eck
wit
h r
ep
uta
ble
ad
vis
ers
an
d in
stit
uti
on
s w
ith
a p
rese
nce
in C
hin
a, t
he
y a
re o
fte
n a
ble
to
co
nd
uc
t h
igh
leve
l ba
ckg
rou
nd
ch
eck
s.
Failu
re t
o o
bta
in t
he
de
tails
of
a p
ote
nti
al b
usi
ne
ss p
art
ne
r/in
vest
or’s
cre
dit
an
d p
rofe
ssio
na
l ba
ckg
rou
nd
co
uld
lea
d t
o p
rob
lem
s in
th
e f
utu
re.
Chi
nese
inve
stor
s us
ually
wan
t to
have
con
trol
ove
r the
bus
ines
s
Be
aw
are
th
at
Ch
ine
se in
vest
ors
oft
en
wa
nt
to h
ave
co
ntr
ol o
ver
the
bu
sin
ess
th
ey
inve
st in
via
loca
l ma
na
ge
me
nt.
If y
ou
wis
h t
o m
ain
tain
fu
ll co
ntr
ol
of
you
r b
usi
ne
ss, c
on
sid
er
this
ca
refu
lly b
efo
re e
nte
rin
g in
to a
Jo
int
Ve
ntu
re a
gre
em
en
t w
ith
Ch
ine
se in
vest
ors
. Se
ek
ad
vic
e f
rom
oth
ers
wh
o h
ave
succ
ess
fully
en
tere
d in
to jo
int
ven
ture
ag
ree
me
nts
wit
h C
hin
ese
inve
sto
rs.
Ch
ine
se in
vest
ors
are
oft
en
inte
rest
ed
in s
ecu
rin
g t
he
ir s
up
ply
ch
ain
or
the
inte
llect
ual
pro
pe
rty
of
the
pro
du
ct r
ath
er
than
th
e p
rod
uct
itse
lf, s
o w
he
n t
ryin
g
to a
ttra
ct in
vest
ors
it is
imp
ort
ant
to d
em
on
stra
te h
ow
th
e p
rod
uct
can
mak
e/s
ave
mo
ne
y an
d h
ow
it fi
ts in
to t
he
inve
sto
r’s e
nd
to
en
d b
usi
ne
ss m
od
el.
AN
Z a
dv
an
tag
es
At
AN
Z w
e o
fte
n r
ece
ive
en
qu
irie
s fr
om
Ch
ine
se in
vest
ors
wan
tin
g t
o in
vest
in A
ust
ralia
, th
is a
llow
s u
s to
faci
litat
e in
tro
du
ctio
ns
wh
ere
ap
pro
pri
ate
.
It’s
imp
orta
nt to
net
wor
k
Me
et
like
-min
de
d p
eo
ple
by
pa
rtic
ipa
tin
g in
re
pu
tab
le A
sia
n b
usi
ne
ss a
sso
cia
tio
ns
an
d c
ha
mb
ers
of
com
me
rce
. Eve
nts
ru
n b
y th
ese
org
an
isa
tio
ns
are
a g
oo
d p
lace
to
sta
rt b
uild
ing
yo
ur
ne
two
rk.
Ch
ine
se b
usi
ne
ss p
eo
ple
usu
ally
pre
fer
to e
sta
blis
h s
tro
ng
re
lati
on
ship
s b
efo
re c
losi
ng
a d
ea
l, so
exp
ec
t to
sp
en
d a
lot
of
tim
e a
t m
ee
tin
gs
an
d d
inn
ers
wit
h p
ote
nti
al b
usi
ne
ss p
art
ne
rs o
ver
a lo
ng
pe
rio
d o
f ti
me
. A g
rea
t d
ea
l of
bu
sin
ess
is c
on
du
cte
d o
ver
din
ne
r.
AN
Z a
dv
an
tag
es
At
AN
Z w
e b
elie
ve in
th
e p
ow
er
of
con
ne
cti
ng
ou
r cl
ien
ts, s
pe
cia
lists
an
d 3
rd p
art
y a
dv
iso
rs t
hro
ug
h n
etw
ork
ing
fu
nc
tio
ns,
bo
th in
Au
stra
lia a
nd
off
sho
re.
Op
enin
g up
in A
ustr
alia
cou
ld b
e a
step
into
chi
na
Op
en
ing
yo
urs
elf
to
Ch
ine
se in
vest
me
nt
in A
ust
ralia
co
uld
op
en
up
th
e p
oss
ibili
ty o
f yo
ur
futu
re b
usi
ne
ss e
xpa
nsi
on
into
Ch
ina
, esp
eci
ally
in in
du
stri
es
tha
t
ho
ld a
hig
h le
vel o
f in
telle
ctu
al p
rop
ert
y th
at
cou
ld b
en
efi
t C
hin
a (
e.g
. he
alt
h a
nd
ag
e c
are
) o
r ke
y p
rod
uc
ts a
nd
se
rvic
es
sou
gh
t b
y th
e C
hin
ese
co
nsu
me
r
(e.g
. hig
h e
nd
ag
ricu
ltu
ral p
rod
uc
ts).
Incr
ease
d do
mes
tic c
omp
etiti
on in
Aus
tral
ia
Prop
erty
– p
artn
erin
g w
ith C
hine
se b
uild
ers
Un
de
r th
e C
hA
FTA
, th
e c
on
stru
cti
on
an
d b
uild
ing
ind
ust
rie
s co
uld
se
e b
en
efi
t fr
om
th
e o
pe
nin
g o
f la
bo
ur
flo
ws
be
twe
en
Ch
ina
an
d A
ust
ralia
. Wit
h t
he
pro
pe
rty
bo
om
in C
hin
a, t
he
re is
an
ab
un
da
nce
of
skill
ed
bu
ilde
rs c
ap
ab
le o
f b
uild
ing
hig
h r
ise
bu
ildin
gs.
A n
um
be
r o
f A
ust
ralia
n b
uild
ers
an
d d
eve
lop
ers
are
alr
ea
dy
exp
lori
ng
pa
rtn
ers
hip
s w
ith
re
pu
tab
le C
hin
ese
pa
rtn
ers
to
un
de
rta
ke m
ajo
r p
roje
cts
in A
ust
ralia
.
Leve
ragi
ng h
olid
ay v
isa
wor
kers
Wo
rkin
g h
olid
ay v
isa
wo
rke
rs a
re o
fte
n g
oo
d s
ou
rce
of
lab
ou
r, e
spe
cia
lly in
th
e A
ust
ralia
n a
gri
cult
ure
ind
ust
ry. C
hin
ese
wo
rke
rs a
re k
no
wn
fo
r th
eir
wo
rk
eth
ic, a
nd
wo
uld
like
th
e o
pp
ort
un
ity
to e
xpe
rie
nce
th
e A
ust
ralia
n w
ay o
f lif
e. B
e s
ure
to
wo
rk w
ith
re
pu
tab
le w
ork
ing
ho
liday
ag
en
ts t
o e
nsu
re y
ou
hav
e
ap
pro
pri
ate
wo
rk c
ove
r p
rov
isio
ns
to c
ove
r a
ny
wo
rkin
g h
olid
ay v
isa
wo
rke
rs.
Ke
y C
on
sid
era
tio
ns
Ke
y C
on
sid
era
tio
ns
TIM
E I
S I
MP
OR
TAN
T, Y
OU
SH
OU
LD
LO
OK
TO
AC
T N
OW
53
53
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
SE
CT
ION
4
NA
VIG
AT
ING
TH
E B
AN
KIN
G M
AR
KE
T
Op
erat
ing
with
or i
n C
hina
can
be
com
ple
x.
We
exam
ine
the
key
risk,
liqu
idit
y, c
urre
ncy,
ca
pita
l and
trap
ped
cas
h co
nsid
erat
ions
.
Th
e C
hA
FTA
re
pre
sen
ts a
fa
nta
stic
lon
g t
erm
op
po
rtu
nit
y fo
r
bo
th A
ust
ralia
an
d C
hin
a. F
or
bu
sin
ess
es
tha
t h
ave
de
cid
ed
tha
t th
ey
wo
uld
like
to
pa
rtic
ipa
te in
th
is o
pp
ort
un
ity,
on
e
of
the
firs
t q
ue
stio
ns
to a
sk w
ill b
e, “
will
I b
e d
oin
g b
usi
ne
ss
wit
h C
hin
a” o
r “w
ill I
be
do
ing
bu
sin
ess
in C
hin
a?”
Th
ere
is a
n im
po
rta
nt
dis
tin
cti
on
, as
the
re
gu
lati
on
s b
etw
ee
n
hav
ing
a t
rad
e r
ela
tio
nsh
ip w
ith
a C
hin
ese
bu
sin
ess
/co
nsu
me
r
are
ve
ry d
iffe
ren
t to
hav
ing
a lo
cally
inco
rpo
rate
d e
nti
ty.
For
a t
rad
e r
ela
tio
nsh
ip, a
ke
y co
nsi
de
rati
on
will
incl
ud
e
wh
ich
cu
rre
nc
y to
use
, wh
ile f
or
com
pa
nie
s th
at
hav
e o
r
pla
n t
o h
ave
su
bsi
dia
rie
s in
Ch
ina
, th
ere
are
op
era
tio
na
l
an
d c
ap
ita
l co
mp
lexi
tie
s su
ch a
s th
e F
DI a
pp
rov
al p
roce
ss,
liqu
idit
y m
an
ag
em
en
t a
nd
th
e r
ep
atr
iati
on
of
ea
rnin
gs.
In t
he
fo
llow
ing
se
cti
on
, we
will
co
ver
the
se a
rea
s in
de
tail.
TR
AD
ING
WIT
H C
HIN
A –
WH
ICH
CU
RR
EN
CY
TO
US
E?
RM
B i
s b
eco
min
g a
glo
ba
l cu
rre
nc
y
Th
e r
ap
id d
eve
lop
me
nt
of
Ch
ina’
s e
con
om
y h
as
ou
tpa
ced
th
e
libe
ralis
ati
on
of
its
fin
an
cia
l sys
tem
. He
avily
re
gu
late
d fi
na
nci
al
ma
rke
ts a
re n
o lo
ng
er
ab
le t
o s
erv
ice
Ch
ina’
s in
cre
asi
ng
ly
sop
his
tica
ted
an
d c
om
ple
x e
con
om
y. A
ke
y a
ge
nd
a o
f C
hin
a’s
fin
an
cia
l re
form
is t
o in
tern
ati
on
alis
e R
MB
, to
lib
era
lise
inte
rest
rate
s a
nd
to
re
lax
con
tro
l on
th
e c
ap
ita
l acc
ou
nt.
RM
B in
tern
ati
on
alis
ati
on
is a
pri
ori
ty f
or
Ch
ina’
s fi
na
nci
al
refo
rm. T
he
RM
B c
ap
ita
l acc
ou
nt
ha
s b
ee
n g
rad
ua
lly
libe
ralis
ed
sin
ce 2
00
9 w
hic
h s
aw g
row
th in
RM
B in
voic
ing
fro
m z
ero
in 2
00
9 t
o o
ver
25
% o
f C
hin
a’s
tota
l cro
ss-b
ord
er
tra
de
by
No
vem
be
r 2
01
4 (
Fig
ure
s 2
9 a
nd
30
). C
on
seq
ue
ntl
y,
the
RM
B’s
ra
nk
as
the
wo
rld
pay
me
nt
curr
en
cy
by
va
lue
ha
s
jum
pe
d f
rom
th
e 1
3th
in J
an
ua
ry 2
01
3 t
o 5
th in
De
cem
be
r
20
14
(Fi
gu
re 3
1).
De
spit
e t
his
ra
pid
de
velo
pm
en
t, R
MB
tra
de
sett
lem
en
t co
mp
rise
s a
re
lati
vely
sm
all
po
rtio
n o
f th
e t
ota
l
cro
ss-b
ord
er
tra
de
bu
t w
ith
th
e C
hA
FTA
an
d f
urt
he
r fi
na
nci
al
ma
rke
t d
ere
gu
lati
on
, th
is is
like
ly t
o m
ate
ria
lly in
cre
ase
.
FIG
UR
E 2
9: R
MB
CR
OS
S-B
OR
DE
R T
RA
DE
VO
LUM
E O
F H
ON
G K
ON
G A
ND
CH
INA
So
urc
e: H
on
g K
on
g M
on
eta
ry A
uth
ori
ty a
nd
Th
e P
eop
le’s
Ba
nk
of
Ch
ina
No
te: S
tart
ing
da
te is
th
e fi
rst
ob
serv
ati
on
da
te p
ub
lish
ed b
y th
e so
urc
es
FIG
UR
E 3
0: T
RA
DE
SE
TT
LE
D I
N R
MB
% O
F C
HIN
A’S
CR
OS
S-B
OR
DE
R T
RA
DE
So
urc
e: G
ener
al A
dm
inis
tra
tio
n o
f C
ust
om
s
0
10
0
20
0
30
0
40
0
50
0
60
0
70
0
7/1
0
9/1
0
11/1
0
1/1
1
3/1
1
5/1
1
7/1
1
9/1
1
11/1
1
1/1
2
3/1
2
5/1
2
7/1
2
9/1
2
11/1
2
1/1
3
3/1
3
5/1
3
7/1
3
9/1
3
11/1
3
1/1
4
3/1
4
5/1
4
7/1
4
9/1
4
11
/14
HK
Cros
s-bo
rder
Tra
de S
ettle
men
t
RMB(
bn)
Mai
nlan
d Ch
ina
Cros
s-bo
rder
Tra
de S
ettle
men
t
0
10
20
30
40
50
60
70
80
90
10
0
%
1/1
2
3/1
2
5/1
2
7/1
2
9/1
2
11/1
2
1/1
3
3/1
3
5/1
3
7/1
3
9/1
3
11/1
3
1/1
4
3/1
4
5/1
4
7/1
4
9/1
4
11
/14
Trad
e Se
ttle
d in
Oth
er C
urre
ncie
s Tr
ade
Sett
led
in R
MB
DO
ING
BU
SIN
ES
S I
N O
R W
ITH
CH
INA
CA
N B
E C
OM
PL
EX
55
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
FIG
UR
E 3
1: R
MB
AS
TH
E W
OR
LD
PA
YM
EN
T C
UR
RE
NC
Y
So
urc
e: S
WIF
T
RM
B: T
hin
gs
to c
on
sid
er
• Tr
ad
ing
in R
MB
ca
n p
ote
nti
ally
lea
d t
o a
low
er
pri
ce f
or
imp
ort
s o
r a
hig
he
r p
rice
fo
r e
xpo
rts,
as
Ch
ine
se b
usi
ne
sse
s
will
no
lon
ge
r n
ee
d t
o a
dd
a b
uff
er
for
FX
ris
k
• P
aym
en
t te
rms
can
ea
sily
be
ext
en
de
d p
ast
90
day
s re
lati
ve
to a
fo
reig
n c
urr
en
cy
wh
ere
th
ere
are
mo
re r
est
ric
tio
ns.
Th
is c
an
be
use
d t
o im
pro
ve s
ale
s o
r w
ork
ing
ca
pit
al
• O
ffe
rin
g o
r a
cce
pti
ng
RM
B c
an
lea
d t
o a
n in
cre
ase
in p
ote
nti
al c
ust
om
ers
an
d s
up
plie
rs
• Tr
ad
ing
in R
MB
will
exp
ose
bu
sin
ess
es
to F
X r
isk,
ho
we
ver,
this
ris
k ca
n b
e h
ed
ge
d a
t th
e d
iscr
eti
on
of
the
co
mp
an
y
KE
Y A
SP
EC
TS
TO
CO
NS
IDE
R W
HE
N C
HO
OS
ING
RM
B
AS
TH
E T
RA
DIN
G C
UR
RE
NC
Y
Th
e p
rem
ise
of
tra
nsi
tio
nin
g t
o R
MB
as
an
invo
icin
g c
urr
en
cy
can
se
em
da
un
tin
g. T
ypic
al c
lien
t q
ue
rie
s a
nd
po
ten
tia
l
kno
wle
dg
e g
ap
s h
ave
incl
ud
ed
:
1. U
nd
ers
tan
din
g t
he
pro
cess
of
ma
kin
g
an
d r
ece
ivin
g R
MB
pay
me
nts
2. A
cce
ssib
ility
, va
rie
ty a
nd
th
e li
qu
idit
y o
f h
ed
gin
g
inst
rum
en
ts r
ela
tive
to
oth
er
curr
en
cie
s
3. D
ev
iati
on
fro
m t
he
do
min
an
t in
du
stry
invo
icin
g
curr
en
cy
(i.e
. US
D)
Th
e r
ea
lity
is t
ha
t R
MB
is n
o lo
ng
er
as
rest
ric
ted
as
it w
as
a
nu
mb
er
of
yea
rs a
go
. Th
e p
roce
ss o
f m
aki
ng
an
d r
ece
ivin
g
RM
B t
rad
e p
aym
en
t h
as
be
en
sim
plifi
ed
by
Ch
ina’
s
Go
vern
me
nt.
Ba
nks
wit
h e
xpe
rie
nce
de
alin
g w
ith
RM
B s
ho
uld
be
ab
le t
o e
xecu
te R
MB
tra
de
se
ttle
me
nt
wit
ho
ut
de
lay,
wh
ile
off
sho
re R
MB
he
dg
ing
is s
imila
r to
th
ose
of
the
ma
jor
glo
ba
l
curr
en
cie
s —
i.e
. th
ere
is n
o r
est
ric
tio
n o
n m
ark
et
acc
ess
,
am
ple
liq
uid
ity
an
d a
va
rie
ty o
f h
ed
gin
g in
stru
me
nts
av
aila
ble
.
For
com
mo
dit
y re
late
d t
rad
e s
ett
lem
en
t su
ch a
s g
old
, oil,
ba
se m
eta
ls a
nd
ag
ricu
ltu
ral p
rod
uc
ts, t
he
US
D is
sti
ll th
e
do
min
an
t p
aym
en
t cu
rre
nc
y. F
or
RM
B t
o in
cre
ase
its
sha
re
in in
tern
ati
on
al c
om
mo
dit
y tr
ad
e fl
ow
s, a
tra
nsp
are
nt
pri
cin
g m
ech
an
ism
will
ne
ed
to
be
de
velo
pe
d. T
he
lau
nch
of
the
inte
rna
tio
na
l bo
ard
by
the
Sh
an
gh
ai G
old
Exc
ha
ng
e
in t
he
SF
TZ
, wh
ich
off
ers
RM
B d
en
om
ina
ted
co
ntr
ac
ts t
o
inte
rna
tio
na
l tra
de
rs, w
as
just
th
e fi
rst
ste
p. T
hre
e m
eta
l
futu
res
we
re a
lso
lau
nch
ed
by
Ho
ng
Ko
ng
Exc
ha
ng
es
in
20
14
an
d m
ore
co
mm
od
ity
exc
ha
ng
es
are
be
ing
pla
nn
ed
in t
he
SF
TZ
, wh
ich
de
mo
nst
rate
th
at
Ch
ina’
s G
ove
rnm
en
t
is d
ete
rmin
ati
on
to
en
cou
rag
e g
rea
ter
use
of
RM
B.
BE
NE
FIT
1: O
VE
RS
EA
S C
OM
PAN
IES
CA
N R
EC
EIV
E U
P T
O
A 5
% P
RIC
E D
ISC
OU
NT
It is
est
ima
ted
th
at
Ch
ine
se c
om
pa
nie
s p
ote
nti
ally
ad
d u
p t
o
5%
to
th
eir
qu
ote
s in
fo
reig
n c
urr
en
cie
s to
ca
ptu
re t
he
co
st
of
be
ari
ng
th
e e
xch
an
ge
ra
te r
isk.
If R
MB
is u
sed
, th
e a
dd
itio
na
l
cost
s ca
n p
ote
nti
ally
be
re
du
ced
as
Au
stra
lian
bu
sin
ess
es
will
be
ar
the
exc
ha
ng
e r
ate
ris
k in
ste
ad
. Fu
rth
erm
ore
, giv
en
incr
ea
sed
RM
B li
qu
idit
y a
nd
inte
rba
nk
con
ne
cti
on
off
sho
re,
Au
stra
lian
bu
sin
ess
es
are
als
o a
ble
to
he
dg
e t
he
RM
B
exc
ha
ng
e r
ate
ris
k a
t a
low
er
cost
co
mp
are
d t
o R
MB
he
dg
ing
co
st o
nsh
ore
. Th
is is
a b
en
efi
t th
at
bo
th C
hin
ese
an
d A
ust
ralia
n c
om
pa
nie
s ca
n s
ha
re.
BE
NE
FIT
2: P
AY
ME
NT
TE
RM
S C
AN
PO
TE
NT
IAL
LY B
E
EX
TE
ND
ED
TO
21
0 D
AY
S
Cu
rre
ntl
y, if
an
invo
ice
(im
po
rt/e
xpo
rt)
is d
en
om
ina
ted
in
a f
ore
ign
cu
rre
nc
y a
nd
its
pay
me
nt
term
s a
re o
ver
90
day
s,
it in
volv
es
a c
om
ple
x a
dm
inis
tra
tio
n p
roce
ss r
eq
ue
ste
d b
y
Ch
ina’
s S
tate
Ad
min
istr
ati
on
of
Fore
ign
Exc
ha
ng
e (
SA
FE
).
Th
is c
an
lim
it t
ac
tica
l in
itia
tive
s to
imp
rove
wo
rkin
g c
ap
ita
l
or
imp
rove
sa
les
by
off
eri
ng
ext
en
de
d t
erm
s to
cu
sto
me
rs.
Se
ttle
me
nt
in R
MB
be
ne
fits
fro
m a
po
ten
tia
l ext
en
sio
n o
f
pay
me
nt
term
s fo
r u
p t
o 2
10
day
s w
ith
ou
t th
e c
om
ple
x
ad
min
istr
ati
on
re
qu
ire
me
nt.
0.32
%
0.36
%
0.39
%
0.39
%
0.40
%
0.45
%
0.56
%
0.72
%
0.78
%
0.88
%
0.90
%
1.27
%
1.39
%
1.79
%
1.92
%
2.17
%
2.69
% 7.
92%
28.3
0%
44.6
4%
#20
TRY
#19
RUB
#18
MXN
#17
NZD
#16
DKK
#15
ZAR
#14
PLN
#13
NO
K
#12
SEK
#11
THB
#10
SGD
#09
HKD
#08
CHF
#07
AU
D
#06
CAD
#05
CNY
#04
JPY
#03
GBP
#02
EUR
#01
USD
0.25
%
0.29
%
0.34
%
0.35
%
0.42
%
0.56
%
0.58
%
0.63
%
0.80
%
0.96
%
0.97
%
1.02
%
1.05
%
1.80
%
1.83
%
1.85
%
2.56
%
8.55
%
33.4
8%
40.1
7%
#20
HU
F
#19
TRY
#18
MXN
#17
NZD
#16
ZAR
#15
RUB
#14
DKK
#13
CNY
#12
NO
K
#11
SEK
#10
THB
#09
HKD
#08
SGD
#07
CAD
#06
CHF
#05
AU
D
#04
JPY
#03
GBP
#02
USD
#01
EUR
UN
DE
RS
TAN
DIN
G A
ND
UT
ILIS
ING
RM
B
AS
A P
AY
ME
NT
CU
RR
EN
CY
MA
Y B
E B
EN
EF
ICIA
L
Re
ceiv
ab
le
Da
ys
Inv
en
tory
Da
ys
Pa
ya
ble
Da
ys
Ca
sh C
on
ve
rsio
n
Cy
cle
Re
ceiv
ab
le
Da
ys
Inv
en
tory
Da
ys
Pa
ya
ble
Da
ys
Ca
sh C
on
ve
rsio
n
Cy
cle
50 50
50
210
-110
50
10
90
57
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
UN
DE
RS
TAN
DIN
G C
HIN
ES
E F
UN
DIN
G C
OS
TS
AR
E I
NT
EG
RA
L T
O N
EG
OT
IAT
ING
WIT
H S
UP
PL
IER
S
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
Be
ne
fits
fo
r A
ust
rali
an
ex
po
rte
rs: N
eg
oti
atin
g in
cre
ase
d
sale
s vo
lum
es
in e
xch
ang
e fo
r e
xte
nd
ed
pay
me
nt
term
s, w
hic
h
pro
vid
e a
maj
or
cap
ital
be
ne
fit
to C
hin
ese
bu
yers
. Ge
ne
rally
spe
akin
g, i
nte
rest
rat
es
in A
ust
ralia
are
low
er
rela
tive
to
Ch
ina
wh
ere
man
y b
usi
ne
sse
s n
ee
d t
o f
un
d v
ia t
he
sh
ado
w b
anki
ng
mar
ket.
By
ext
en
din
g t
erm
s, A
ust
ralia
n b
usi
ne
sse
s ar
e p
rovi
din
g
liqu
idit
y to
Ch
ine
se c
ust
om
ers
. Th
is c
an b
e a
n e
ffe
ctiv
e w
ay o
f
gro
win
g s
ale
s an
d/o
r at
trac
tin
g m
ore
Ch
ine
se b
uye
rs.
Be
ne
fit
to C
hin
ese
im
po
rte
rs:
By
acc
ep
tin
g t
he
lon
ge
r
pay
me
nt
term
s, C
hin
ese
cu
sto
me
rs c
an
ach
ieve
be
tte
r
wo
rkin
g c
ap
ita
l effi
cie
nc
y a
nd
a lo
we
r av
era
ge
co
st o
f fu
nd
s.
Furt
he
rmo
re, u
sin
g R
MB
as
the
pay
me
nt
curr
en
cy
en
ab
les
term
s to
be
ext
en
de
d p
ast
90
day
s, t
he
reb
y p
rov
idin
g la
rge
r
wo
rkin
g c
ap
ita
l be
ne
fits
to
Ch
ine
se im
po
rte
rs.
For
Au
stra
lian
su
bsi
dia
rie
s in
Ch
ina,
uti
lisin
g R
MB
to
pay
th
e
Au
stra
lian
par
en
t ca
n e
nab
le p
aym
en
t te
rms
for
inte
rco
mp
any
trad
e t
o b
e e
xte
nd
ed
to
21
0 d
ays
fro
m 9
0 d
ays.
Wh
ile t
he
par
en
t
be
ars
the
wo
rkin
g c
apit
al b
urd
en
, if
Au
stra
lian
fu
nd
ing
co
sts
are
low
er
rela
tive
to
Ch
ina,
th
ere
is a
ne
t b
en
efi
t to
th
e G
rou
p.
BE
NE
FIT
3: W
IDE
R B
UY
ER
AN
D S
UP
PL
IER
BA
SE
BE
CO
ME
AC
CE
SS
IBL
E
Th
ere
are
a la
rge
nu
mb
er
of
Ch
ine
se c
om
pa
nie
s ye
t to
de
velo
p f
ore
ign
cu
rre
nc
y ca
pa
bili
ty. T
he
refo
re, t
he
ab
ility
to s
ett
le in
RM
B w
ill a
llow
Au
stra
lian
bu
sin
ess
es
to a
cce
ss
a b
roa
de
r ra
ng
e o
f b
uye
rs/s
up
plie
rs, r
ed
uce
bu
yer/
sup
plie
r
con
cen
trat
ion
ris
k, w
hile
low
eri
ng
cre
dit
an
d r
ep
uta
tio
nal
ris
k.
Th
is is
pa
rtic
ula
rly
imp
ort
an
t in
th
e c
on
text
of
the
Ch
AF
TA.
FIG
UR
E 3
2: U
TIL
ISIN
G R
MB
TO
IM
PR
OV
E W
OR
KIN
G C
AP
ITA
L
Illu
stra
tive
exa
mp
le o
nly
Befo
re
Aft
er
FIG
UR
E 3
3: R
MB
CO
ST
BE
NE
FIT
AN
ALY
SIS
So
urc
e: A
NZ
Ex
po
rte
rsIm
po
rte
rs
Chi
nese
C
omp
anie
s
Pros
Con
sPr
osC
ons
• N
atu
ral h
ed
ge
ag
ain
st
do
me
stic
exp
en
ses
• R
ed
uc
tio
n in
he
dg
ing
co
sts
• E
arn
hig
he
r in
tere
st
on
RM
B d
ep
osi
ts
• N
o t
ran
sla
tio
n g
ain
/lo
ss
• M
ay n
ee
d t
o g
ive
aw
ay
pro
fit
ma
rgin
• D
ep
reci
ati
on
in R
MB
rela
tive
to
US
D
• N
atu
ral h
ed
ge
ag
ain
st
do
me
stic
sa
les
• R
ed
uc
tio
n in
he
dg
ing
co
sts
• O
vers
ea
s co
un
terp
art
s’
will
ing
ne
ss t
o in
voic
e
in R
MB
• A
pp
reci
ati
on
in R
MB
Aus
tral
ian
C
omp
anie
s
Pros
Con
sPr
osC
ons
• N
eg
oti
ate
hig
he
r
selli
ng
pri
ce
• O
bta
in c
he
ap
er
off
sho
re
RM
B h
ed
gin
g in
stru
me
nts
• A
cce
ss t
o a
wid
er
clie
nt
ba
se
• In
cre
ase
in s
ale
s
sup
po
rte
d b
y p
aym
en
t
term
s e
xte
nsi
on
• R
MB
FX
ris
k•
Ne
go
tia
te lo
we
r
bu
yin
g p
rice
• O
bta
in c
he
ap
er
off
sho
re
RM
B h
ed
gin
g in
stru
me
nts
• N
eg
oti
ate
lon
ge
r
tra
din
g t
erm
s
• A
cce
ss t
o a
wid
er
sup
plie
r b
ase
• R
MB
FX
ris
k
59
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
AU
ST
RA
LIA
N B
US
INE
SS
ES
HA
VE
TH
E C
APA
CIT
Y T
O I
NV
ES
T
AN
D O
PE
RA
TE
WH
OL
LY O
WN
ED
SU
BS
IDIA
RIE
S I
N C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
Inve
stm
ent i
n C
hina
Acr
oss
mo
st in
du
stri
es,
tar
iff r
ed
uct
ion
s an
d im
pro
ved
mar
ket
acce
ss t
o C
hin
a w
ill m
ean
th
at t
rad
e c
on
sid
era
tio
ns
such
as
RM
B in
voic
ing
are
th
e p
rim
ary
con
sid
era
tio
n. H
ow
eve
r, fo
r a
nu
mb
er
of
ind
ust
rie
s su
ch a
s h
eal
th (
age
d c
are
an
d h
osp
ital
s),
tou
rism
(h
ote
ls a
nd
to
ur
op
era
tors
) an
d in
sura
nce
(3
rd p
arty
mo
tor
veh
icle
liab
ility
), A
ust
ralia
n b
usi
ne
sse
s h
ave
th
e c
apac
ity
to in
vest
an
d o
pe
rate
wh
olly
ow
ne
d s
ub
sid
iari
es
in C
hin
a.
Th
is is
a s
ign
ifica
nt
op
po
rtu
nit
y, b
ut
on
e t
ha
t co
me
s w
ith
incr
ea
sed
co
mp
lexi
ty. I
t a
lso
hig
hlig
hts
ho
w C
hin
a is
op
en
ing
up
its
cap
ita
l acc
ou
nt
an
d s
imp
lifyi
ng
inve
stm
en
t p
roce
du
res.
As
such
, Ch
ina
will
se
e a
n in
cre
asi
ng
am
ou
nt
of
cro
ss-b
ord
er
inve
stm
en
t, b
oth
inb
ou
nd
(Fo
reig
n D
ire
ct
Inve
stm
en
t)
an
d o
utb
ou
nd
(O
vers
ea
s D
ire
ct
Inve
stm
en
t) (
Fig
ure
34
).
FIG
UR
E 3
4: O
VE
RS
EA
S D
IRE
CT
IN
VE
ST
ME
NT
AN
D F
OR
EIG
N D
IRE
CT
IN
VE
ST
ME
NT
So
urc
e: W
ind
info
rma
tio
n a
nd
AN
Z e
con
om
ics
No
te: O
DI:
Ove
rsea
s D
irec
t In
vest
men
t; F
DI:
Fore
ign
Dir
ect
Inve
stm
ent.
Wit
h t
he
Ch
AF
TA, A
ust
ralia
n c
om
pa
nie
s w
ill h
ave
a
com
pe
titi
ve a
dv
an
tag
e a
ga
inst
ma
ny
oth
er
fore
ign
com
pa
nie
s th
at
are
sti
ll la
rge
ly r
est
ric
ted
fro
m o
pe
rati
ng
wh
olly
ow
ne
d s
ub
sid
iari
es
in C
hin
a. H
ow
eve
r, th
is w
ind
ow
of
com
pe
titi
ve a
dv
an
tag
e is
un
like
ly t
o la
st, a
s C
hin
a
op
en
s u
p it
s m
ark
et
an
d s
ign
s F
TAs
wit
h o
the
r co
un
trie
s.
For
Au
stra
lian
bu
sin
ess
es
loo
kin
g t
o s
et
up
op
era
tio
ns,
ma
ny
will
en
cou
nte
r th
ree
ma
in c
om
ple
xiti
es:
• T
he
FD
I ap
pro
va
l pro
cess
(to
est
ab
lish
su
bsi
dia
rie
s)
• Li
qu
idit
y m
an
ag
em
en
t (h
avin
g y
ou
r ca
sh in
th
e r
igh
t
pla
ce a
nd
str
ea
mlin
ing
pay
me
nts
)
• R
ep
atr
iati
on
of
ea
rnin
gs
(avo
idin
g t
rap
pe
d c
ash
)
0
10
,00
0
20
,00
0
30
,00
0
40
,00
0
50
,00
0
60
,00
0
70
,00
0
80
,00
0
90
,00
0
10
0,0
00
3/9
8
3/9
9
3/0
0
3/0
1
3/0
2
3/0
3
3/0
4
3/0
5
3/0
6
3/0
7
3/0
8
3/0
9
3/1
0
3/1
1
3/1
2
3/1
3
3/1
4
Ove
rsea
s D
irect
Inve
stm
ent
Fore
ign
Dire
ct In
vest
men
t Ex
pon.
(Ove
rsea
s D
irect
Inve
stm
ent)
Ex
pon.
(For
eign
Dire
ct In
vest
men
t)
61
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
Sim
plifi
ed F
DI a
pp
rova
l pro
cess
To e
sta
blis
h a
su
bsi
dia
ry in
Ch
ina
, fo
reig
n c
om
pa
nie
s h
ave
to g
o t
hro
ug
h a
nu
mb
er
of
go
vern
me
nt
au
tho
riti
es
an
d
ap
pro
va
l/fi
ling
pro
cess
es.
Th
e k
ey
de
pa
rtm
en
ts a
re t
he
Na
tio
na
l De
velo
pm
en
t a
nd
Re
form
Co
mm
issi
on
(N
DR
C),
the
Min
istr
y o
f C
om
me
rce
(M
OF
CO
M)
an
d t
he
Sta
te
Ad
min
istr
ati
on
of
Fore
ign
Exc
ha
ng
e (
SA
FE
). R
ece
nt
yea
rs
hav
e s
ee
n N
DR
C, M
OF
CO
M a
nd
SA
FE
de
reg
ula
te a
nd
sim
plif
y a
pp
rov
al p
roce
sse
s in
an
eff
ort
to
pro
mo
te in
bo
un
d
inve
stm
en
t. C
ou
ple
d w
ith
th
e d
ere
gu
lati
on
, th
e C
hA
FTA
en
ha
nce
s th
e b
en
efi
ts f
or
Au
stra
lian
bu
sin
ess
es
to in
vest
in C
hin
a in
a n
um
be
r o
f se
cto
rs/i
nd
ust
rie
s.
Th
e f
ollo
win
g h
igh
ligh
ts k
ey
reg
ula
tio
ns
an
d b
en
efi
ts (
du
e t
o
the
co
mp
lexi
ty o
f th
e r
eg
ula
tio
ns,
we
re
com
me
nd
yo
u t
o s
ee
k
ind
ep
en
de
nt
leg
al a
dv
ice
on
de
taile
d in
vest
me
nt
pa
ram
ete
rs).
• N
DR
C g
ove
rns
FD
I. T
he
ma
in r
eg
ula
tory
do
cum
en
ts f
or
FD
I
are
th
e C
ata
log
ue
fo
r th
e G
uid
an
ce o
f Fo
reig
n In
vest
me
nt
Ind
ust
rie
s (F
ore
ign
Inve
stm
en
t C
ata
log
ue
20
11
), th
e
Ca
talo
gu
e o
f In
vest
me
nt
Pro
jec
ts s
ub
jec
t to
Go
vern
me
nta
l
Ve
rifi
cati
on
an
d A
pp
rov
al (
Inve
stm
en
t C
ata
log
ue
20
14
) a
nd
Ad
min
istr
ati
ve M
ea
sure
s fo
r A
pp
rov
al a
nd
Fili
ng
of
Fore
ign
Inve
stm
en
t P
roje
cts
(“M
ea
sure
s”).
• T
he
Fo
reig
n In
vest
me
nt
Cat
alo
gu
e 2
01
1 is
th
e m
ain
po
licy
to r
eg
ula
te F
DIs
. It
div
ide
s F
DIs
into
th
ree
cat
eg
ori
es:
En
cou
rag
ed
Fo
reig
n In
vest
me
nt,
Re
stri
cte
d F
ore
ign
Inve
stm
en
t an
d P
roh
ibit
ed
Fo
reig
n In
vest
me
nt.
All
oth
ers
fall
into
Pe
rmit
ted
Fo
reig
n In
vest
me
nts
. To
pro
tect
Ch
ina’
s
inte
rest
s in
a n
um
be
r o
f ke
y in
du
stri
es,
re
stri
ctio
ns
are
imp
ose
d o
n in
vest
me
nt
form
s an
d s
har
eh
old
ing
s. T
he
Ch
AF
TA a
llow
s so
me
ind
ust
rie
s to
hav
e w
ho
lly A
ust
ralia
n
ow
ne
d s
ub
sid
iari
es
in C
hin
a, w
hic
h p
rovi
de
s A
ust
ralia
n
bu
sin
ess
es
wit
h a
sig
nifi
can
t ad
van
tag
e c
om
par
ed
to
pla
yers
in o
the
r co
un
trie
s. T
o k
ee
p u
p w
ith
Ch
ina’
s d
eve
lop
me
nt,
th
e
revi
sed
dra
ft o
f th
e c
atal
og
ue
was
pu
blis
he
d in
20
14
, wh
ich
acco
rdin
gly
to
Kin
g &
Wo
od
Mal
leso
ns
red
uce
d R
est
rict
ed
Fore
ign
Inve
stm
en
t in
du
stri
es
by
mo
re t
han
hal
f (f
rom
79
to
35
), cu
t th
e n
um
be
r o
f in
du
stri
es
that
we
re li
mit
ed
to
join
t
ven
ture
s an
d p
artn
ers
hip
s fr
om
43
to
11
an
d d
ecr
eas
ed
the
nu
mb
er
of
ind
ust
rie
s th
at r
eq
uir
e a
Ch
ine
se m
ajo
rity
shar
eh
old
er
fro
m 4
4 t
o 2
2. T
his
is a
po
siti
ve s
tep
to
war
ds
libe
ralis
ing
Ch
ina’
s ca
pit
al a
cco
un
t an
d in
bo
un
d fo
reig
n
inve
stm
en
t. It
als
o s
ug
ge
sts
that
Au
stra
lia’s
pre
sen
t
adva
nta
ge
will
no
t la
st in
de
fin
ite
ly.
• In
vest
me
nt
Ca
talo
gu
e 2
01
4 li
sts
the
ap
pro
va
l bo
dy
for
ma
jor
ind
ust
rie
s in
Ch
ina
an
d t
he
th
resh
old
s fo
r F
DIs
wh
ich
hav
e b
ee
n r
ela
xed
in t
he
pa
st t
wo
ye
ars
(ta
ble
op
po
site
):
FIG
UR
E 3
5: I
NV
ES
TM
EN
T C
ATA
LOG
UE
FD
I TH
RE
SH
OL
D (
20
14
vs
20
13
)
*ru
les
are
fo
r in
vest
men
t re
qu
ired
to
be
con
tro
lled
by
Ch
ines
e in
vest
ors
So
urc
e: C
ata
log
ue
of
Inve
stm
ent
Pro
ject
s su
bje
ct t
o G
ove
rnm
enta
l Ver
ific
ati
on
an
d A
pp
rova
l (2
01
4)
an
d (
20
13
)
2014
Enco
ura
ged
Fo
reig
n In
vest
men
t*O
ve
r U
SD
2 b
illi
on
ND
RC
Ap
pro
va
l +
Sta
te C
ou
nc
il F
ilin
g
Ov
er
US
D1
bil
lio
nN
DR
C A
pp
rov
al
Le
ss t
ha
n U
SD
1 b
illi
on
Lo
ca
l G
ov
ern
me
nt
Ap
pro
va
l
Rest
rict
ed F
ore
ign
In
vest
men
tO
ve
r U
SD
10
0 m
illi
on
ND
RC
Ap
pro
va
l
Le
ss t
ha
n U
SD
10
0 m
illi
on
an
d r
ea
l e
sta
te i
nd
ust
ry
(re
ga
rdle
ss o
f th
e a
mo
un
t)
Pro
vin
cia
l G
ov
ern
me
nt
Ap
pro
va
l
2013
Enco
ura
ged
Fo
reig
n In
vest
men
t*O
ve
r U
SD
30
0 m
illi
on
ND
RC
Ap
pro
va
l
Le
ss t
ha
n U
SD
30
0 m
illi
on
Lo
ca
l G
ov
ern
me
nt
Ap
pro
va
l
Rest
rict
ed F
ore
ign
In
vest
men
tO
ve
r U
SD
50
mN
DR
C A
pp
rov
al
Le
ss t
ha
n U
SD
50
mil
lio
n a
nd
re
al
est
ate
in
du
stry
(re
ga
rdle
ss o
f th
e a
mo
un
t)
Pro
vin
cia
l G
ov
ern
me
nt
Ap
pro
va
l
UN
DE
RS
TAN
DIN
G T
HE
LE
GA
L I
MP
LIC
AT
ION
S
AR
E C
RIT
ICA
L W
HE
N I
NV
ES
TIN
G I
N C
HIN
A
Regi
onal
Tre
asur
y Ce
ntre
Paym
ent F
acto
ryPhys
ical
Cas
h Sw
eepi
ng*
Sub
1, 2
& 3
sig
n ag
reem
ent
to g
ive
paym
ent f
acto
ry
the
auth
ority
to c
arry
out
PO
BO a
nd R
OBO
POBO
Sub
2
POBO
Sub
3
Sub
1
Sub
2
Sub
3O
vers
eas
Cust
omer
C
Ove
rsea
s Cu
stom
er B
Ove
rsea
s Su
pplie
r A
POBO
Sub
1
Exa
mp
le: O
ther
than
usin
g ce
ntra
lised
pay
men
t met
hods
to p
ay o
r rec
eive
from
ove
rsea
s tra
ding
coun
terp
arts
, co
mpa
nies
can
also
use
it fo
r int
erco
mpa
ny tr
ansa
ctio
ns to
redu
ce tr
ansa
ctio
n vo
lum
e an
d tra
nsac
tion
cost
s.
*The
re is
no
limit
on c
ash
swee
ping
insi
de th
e SF
TZ. T
houg
h ca
sh s
wee
ping
has
bee
n ro
lled
out o
utsi
de th
e SF
TZ, t
here
is a
cei
ling
on c
ash
inflo
ws.
63
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
• “M
ea
sure
s” a
bo
lish
es
the
ap
pro
va
l an
d q
uo
ta m
an
ag
em
en
t
pro
cess
, re
pla
cin
g it
wit
h a
filin
g s
yste
m. I
t st
ate
s th
at
all
fore
ign
inve
ste
d p
roje
cts
are
on
ly s
ub
jec
t to
a fi
ling
pro
cess
un
less
it is
me
nti
on
ed
in t
he
Ca
talo
gu
e f
or
the
Gu
ida
nce
of
Fore
ign
Inve
stm
en
t In
du
stri
es
(20
11
) a
nd
th
e C
ata
log
ue
of
Inve
stm
en
t P
roje
cts
su
bje
ct
to G
ove
rnm
en
tal V
eri
fica
tio
n
an
d A
pp
rov
al (
20
14
).
• M
OF
CO
M g
ove
rns
reg
istr
ati
on
of
a c
om
pa
ny.
Th
e a
pp
rov
al
of
a F
DI i
s a
ke
y e
lem
en
t fo
r co
mp
an
y re
gis
tra
tio
n. I
f th
e F
DI
is n
ot
ap
pro
ved
, th
e p
rop
ose
d c
om
pa
ny
will
no
t b
e a
llow
ed
to r
eg
iste
r in
Ch
ina
.
• In
th
e r
eg
istr
atio
n p
roce
ss, M
OF
CO
M a
lso
de
term
ine
s th
e
min
imu
m r
eg
iste
red
cap
ital
for
a co
mp
any.
As
the
nam
e
sug
ge
sts,
it is
th
e f
un
ds
that
are
re
qu
ire
d t
o r
eg
iste
r w
ith
th
e
Go
vern
me
nt
to u
se fo
r fu
nd
ing
of
a p
roje
ct a
nd
it c
ann
ot
be
wit
hd
raw
n. U
nlik
e in
Au
stra
lia w
he
re p
eo
ple
can
se
t
up
a “o
ne
-do
llar”
co
mp
any.
Ch
ina
req
uir
es
a co
mp
any
to
hav
e a
min
imu
m le
vel o
f re
gis
tere
d c
apit
al. T
he
re
gis
tere
d
cap
ital
form
s p
art
of
the
ap
pro
ved
pro
ject
am
ou
nt
and
th
e
sho
rtfa
ll ca
n b
e s
up
po
rte
d b
y d
eb
t o
r e
qu
ity.
To
pro
vid
e
mo
re fl
exi
bili
ty u
po
n c
om
pan
y se
tup
, MO
FC
OM
re
leas
ed
th
e
No
tice
of
Imp
rove
me
nts
on
Fo
reig
n In
vest
me
nt
Exa
min
atio
n
Man
age
me
nt
(th
e N
oti
ce)
wh
ich
elim
inat
es
the
exa
min
atio
n
and
ap
pro
val o
f re
gis
tere
d c
apit
al a
nd
cap
ital
co
ntr
ibu
tio
n
for
mo
st o
f F
IEs
(oth
er
than
27
se
cto
rs/i
nd
ust
rie
s). D
esp
ite
the
elim
inat
ion
, re
qu
ire
me
nts
on
th
e r
atio
be
twe
en
th
e
reg
iste
red
cap
ital
an
d t
he
to
tal i
nve
stm
en
t o
f an
FIE
con
tin
ue
to
be
in e
ffe
ct (
Min
ter
Elli
son
). Fo
r fu
rth
er
de
tail
of
the
de
reg
ula
tio
n, r
efe
r to
th
e a
pp
en
dic
es.
• O
nce
MO
FC
OM
ap
pro
va
l is
ob
tain
ed
, a c
om
pa
ny
will
ne
ed
a
fore
ign
cu
rre
nc
y e
xch
an
ge
ce
rtifi
cate
fro
m S
AF
E t
o b
e a
ble
to t
ran
sfe
r th
e f
un
ds.
A S
AF
E c
ert
ifica
te is
th
e o
ne
th
at
ba
nks
will
loo
k a
t to
tra
nsf
er
a c
om
pa
ny
’s in
vest
me
nt
fun
ds.
Se
e
ap
pe
nd
ice
s fo
r fu
rth
er
de
tails
.
Wh
ile t
he
op
po
rtu
nit
ies
of
sett
ing
up
a b
usi
ne
ss in
Ch
ina
are
no
do
ub
t a
ttra
cti
ve, t
he
afo
rem
en
tio
ne
d a
na
lysi
s
hig
hlig
hts
th
at
no
t o
nly
do
th
e r
eg
ula
tio
ns
cha
ng
e f
req
ue
ntl
y,
bu
t th
ere
is a
leve
l of
am
big
uit
y. W
ha
t’s
mo
st im
po
rta
nt
is t
ha
t
bu
sin
ess
es
sho
uld
se
ek
form
al l
eg
al a
dv
ice
ea
rly
to u
nd
ers
tan
d w
ha
t th
ey
can
an
d c
an
no
t d
o in
Ch
ina
.
LIQ
UID
ITY
MA
NA
GE
ME
NT
Th
e C
hin
ese
go
vern
me
nt
con
tin
ue
to
pro
mo
te in
bo
un
d
an
d o
utb
ou
nd
inve
stm
en
t a
s p
art
of
furt
he
r fi
na
nci
al r
efo
rm.
Ce
ntr
alis
ed
pay
me
nt
(Pay
On
Be
ha
lf O
f a
nd
Re
ceiv
e O
n B
eh
alf
Of)
an
d n
ett
ing
wa
s fi
rst
intr
od
uce
d in
th
e S
ha
ng
ha
i Fre
e
Tra
de
Zo
ne
as
a p
ilot
pro
gra
m. I
t w
as
sub
seq
ue
ntl
y ro
lled
ou
t
to p
an
Ch
ina
in 2
01
4. B
y le
vera
gin
g t
he
ne
w p
olic
y, A
ust
ralia
n
com
pa
nie
s ca
n b
ett
er
ma
na
ge
th
eir
liq
uid
ity
by
incl
ud
ing
the
ir C
hin
ese
su
bsi
dia
rie
s in
to a
gro
up
pay
me
nt
fac
tory
. If
the
invo
icin
g c
urr
en
cy
is in
RM
B, t
he
y ca
n u
se P
ay O
n B
eh
alf
Of
(“P
OB
O”)
an
d R
ece
ive
On
Be
ha
lf O
f (“
RO
BO
”) s
olu
tio
ns
to
cen
tra
lise
pay
me
nts
an
d s
we
ep
ca
sh t
o t
he
re
gio
na
l tre
asu
ry
cen
tre
. If
the
invo
icin
g c
urr
en
cy
is a
fo
reig
n c
urr
en
cy,
th
ey
can
use
PO
BO
an
d R
OB
O t
o c
en
tra
lise
its
pay
me
nt,
FX
ne
ttin
g
to r
ed
uce
FX
exp
osu
re a
nd
tra
nsa
cti
on
vo
lum
e a
nd
FX
ca
sh
swe
ep
ing
to
mo
ve li
qu
idit
y to
th
e r
eg
ion
al t
rea
sury
ce
ntr
e.
Se
e fi
gu
res
36
an
d 3
7.
Ce
ntr
alis
ed
liq
uid
ity
ma
na
ge
me
nt
pro
vid
es
bu
sin
ess
es
wit
h
be
tte
r co
ntr
ol,
en
ha
nce
d li
qu
idit
y a
nd
gre
ate
r v
isib
ility
on
fun
ds
at
a G
rou
p le
vel.
It a
lso
re
du
ces
fore
ign
exc
ha
ng
e
exp
osu
res,
low
ers
ove
rall
tra
nsa
cti
on
s co
sts
an
d it
sh
ou
ld
als
o r
ed
uce
th
e la
bo
ur
inte
nsi
ty o
f a
fin
an
ce/t
rea
sury
te
am
.
FIG
UR
E 3
6: A
N E
FF
EC
TIV
E T
RE
AS
UR
Y M
AN
AG
EM
EN
T E
XA
MP
LE
(R
MB
)
So
urc
e: P
BO
C, A
NZ
If th
e p
aym
ent c
urre
ncy
is in
RM
B
CH
INE
SE
SU
BS
IDIA
RIE
S O
F A
US
TR
AL
IAN
CO
MPA
NIE
S C
AN
BE
TT
ER
MA
NA
GE
TH
EIR
LIQ
UID
ITY
BY
SW
EE
PIN
G C
AS
H T
O T
HE
IR T
RE
AS
UR
Y C
EN
TR
E
65
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
FIG
UR
E 3
7: P
AY
ME
NT
FLO
W E
XA
MP
LE
(F
OR
EIG
N C
UR
RE
NC
Y)
So
urc
e: P
BO
C, A
NZ
If th
e p
aym
ent c
urre
ncy
is in
fore
ign
curr
ency
Net
inflo
w w
ithin
tota
l for
eign
bo
rrow
ing
quot
a of
all
subs
^N
et o
utflo
w w
ithin
tota
l for
eign
le
ndin
g qu
ota
of a
ll su
bs*
Regi
onal
Tre
asur
y Ce
ntre
Dom
estic
For
eign
Ex
chan
ge C
apita
l M
aste
r Acc
ountPh
ysic
al C
ash
Swee
ping
- no
lim
it
Sub
1, 2
& 3
sig
n ag
reem
ent
to g
ive
paym
ent f
acto
ry
the
auth
ority
to c
arry
out
PO
BO a
nd R
OBO
POBO
Sub
2
POBO
Sub
3
Sub
1
Sub
2
Sub
3O
vers
eas
Cust
omer
C
Ove
rsea
s Cu
stom
er B
Ove
rsea
s Su
pplie
r A
POBO
Sub
1
Inte
rnat
iona
l For
eign
Ex
chan
ge C
apita
l M
aste
r Acc
ount
* The
net
out
flow
is re
quire
d to
be
with
in 5
0% o
f tot
al e
quity
of o
nsho
re m
embe
rs. T
his
rule
was
firs
t tes
ted
in th
e Sh
angh
ai F
ree
Trad
e Zo
ne a
nd ro
lled
out t
o Pa
n Ch
ina
subs
eque
ntly
. Th
e qu
ota
was
incr
ease
d fr
om 3
0% to
50%
.
^The
fore
ign
borr
owin
g qu
ota,
or b
orro
win
g ga
p, is
the
dif f
eren
ce b
etw
een
the
FIE’
s to
tal i
nves
tmen
t and
its
regi
ster
ed c
apita
l
Exa
mp
le: B
y us
ing
POBO
and
RO
BO, c
ompa
nies
can
cent
ralis
e al
l FX
trans
actio
ns in
one
acc
ount
. Net
ting
solu
tions
ena
ble
com
pani
es to
redu
ce
the
num
ber o
f FX
trans
actio
ns a
nd th
e ov
eral
l FX
expo
sure
. If S
ub 1,
2 &
3 tr
ansa
ct se
para
tely
and
Sub
1 h
as A
UD40
pay
able
, Sub
2 h
as A
UD30
re
ceiv
able
and
Sub
3 h
as A
UD10
pay
able
, the
tota
l FX
purc
hase
will
be
AUD
80 a
nd th
e ov
eral
l exp
osur
e w
ill b
e AUD
80. I
nste
ad, if
Sub
1, 2
& 3
em
ploy
cent
ralis
ed p
aym
ent a
nd n
ettin
g so
lutio
ns, t
he to
tal F
X tra
nsac
tion
amou
nt w
ill re
duce
to A
UD20
and
exp
osur
e w
ill re
duce
to A
UD20
. Th
is so
lutio
n sig
nific
antly
redu
ces t
rans
actio
n co
sts a
nd F
X ex
posu
re.
CE
NT
RA
LIS
ED
LIQ
UID
ITY
MA
NA
GE
ME
NT
PR
OV
IDE
S B
US
INE
SS
ES
WIT
H B
ET
TE
R C
ON
TR
OL,
EN
HA
NC
ED
LIQ
UID
ITY
AN
D G
RE
AT
ER
VIS
IBIL
ITY
ON
FU
ND
S A
T A
GR
OU
P L
EV
EL
67
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
REPA
TRIA
TIO
N O
F EA
RNIN
GS
So
luti
on
s to
mo
ve f
un
ds
ou
t o
f C
hin
a (
com
mo
nly
kn
ow
n
as
“tra
pp
ed
ca
sh”)
hav
e b
ee
n a
to
p p
rio
rity
fo
r tr
ea
sure
rs.
Re
cen
t d
ere
gu
lati
on
co
uld
me
an
th
e e
nd
of “
tra
pp
ed
ca
sh”.
In a
dd
itio
n t
o t
he
ab
ove
ca
sh s
we
ep
ing
so
luti
on
, th
ere
are
tw
o o
the
r so
luti
on
s d
eve
lop
ed
in r
ece
nt
yea
rs f
or
“tra
pp
ed
ca
sh”.
CR
OS
SB
OR
DE
R L
EN
DIN
G
ON
EW
AY
CA
SH
PO
OL
ING
Cro
ss-b
ord
er
len
din
g (
als
o k
no
wn
as
en
tru
ste
d lo
an
s) is
a
on
e-w
ay c
ash
po
olin
g s
olu
tio
n. I
t is
re
ferr
ed
to
as
on
e-w
ay
be
cau
se t
he
ne
t in
flo
w c
an
no
t e
xce
ed
th
e n
et
ou
tflo
w. T
his
solu
tio
n is
su
ite
d f
or
com
pa
nie
s w
ith
on
e-o
ff fi
na
nce
ne
ed
s
such
as
com
pa
nie
s w
ith
an
imm
ed
iate
ne
ed
to
ra
ise
fu
nd
s fo
r
a p
roje
ct
bu
t w
ith
go
od
wo
rkin
g c
ap
ita
l effi
cie
nc
y o
nsh
ore
.
FIG
UR
E 3
8: C
RO
SS
BO
RD
ER
LE
ND
ING
So
urc
e: P
BO
C, A
NZ
AN
Z Ba
nk
Repa
ymen
tLo
an
draw
dow
n
Prin
cipl
ePr
inci
pal
and
inte
rest
RMB
entr
uste
d lo
ans
RMB
spec
ial d
epos
it ac
coun
t
FCY
entr
uste
d lo
ans
Ente
rpris
es in
the
List
of M
ultin
atio
nal
Com
pani
es a
nd w
ith a
ppro
val o
f Sta
te
Adm
inis
trat
ion
of F
orei
gn E
xcha
nge
Sour
ce o
f fun
ds: n
o re
stric
tion
- co
rpor
ates
can
bor
row
from
on
shor
e ba
nks
Pa
ren
t/su
bsi
dia
ry
Ou
tsid
e C
hin
a
(Of f
shor
e)
On
sho
re
ba
nk
Su
bsi
dia
ry
in C
hin
a
(Ons
hore
)
Borr
ower
Lend
er
Inte
rcom
pany
lo
an a
gree
men
t
CR
OS
S B
OR
DE
R L
EN
DIN
G A
ND
CR
OS
S B
OR
DE
R G
UA
RA
NT
EE
S
CA
N H
EL
P R
EPA
TR
IAT
E C
HIN
ES
E O
NS
HO
RE
EA
RN
ING
S
69
AN
Z O
PP
OR
TU
NIT
Y C
HIN
A
Se
cti
on
4 –
Na
vig
ati
ng
th
e b
an
kin
g m
ark
et
FIG
UR
E 4
0: C
AS
H S
WE
EP
ING
, LO
AN
AN
D G
UA
RA
NT
EE
PR
OS
AN
D C
ON
S
So
urc
e: P
BO
C, A
NZ
RM
B T
wo
-wa
y
Ca
sh S
we
ep
ing
FC
Y T
wo
-wa
y
Ca
sh S
we
ep
ing
RM
B
En
tru
ste
d L
oa
n
FC
Y
En
tru
ste
d L
oa
n
RM
B
Gu
ara
nte
e
FC
Y
Gu
ara
nte
e
Co
stL
ow
Lo
wL
ow
Lo
wH
igh
Hig
h
Fun
ds
Lim
its
No
Lim
it (
Lim
it)
/Tw
o w
ay
Lim
it/T
wo
wa
yN
o L
imit
/On
e w
ay
No
Lim
it/O
ne
wa
yN
o L
imit
/Tw
o w
ay
No
Lim
it/T
wo
wa
y
Ease
to
Op
erat
eL
ow
Lo
wL
ow
Hig
hL
ow
Lo
w
Loca
tio
nS
FT
Z (
Ch
ina
)C
hin
aC
hin
aC
hin
aC
hin
aC
hin
a
Sou
rce
of F
un
ds
Op
era
tin
g
or
inv
est
ing
ca
sh f
low
Op
era
tin
g
or
inv
est
ing
ca
sh f
low
No
Re
stri
cti
on
No
Re
stri
cti
on
No
Re
stri
cti
on
No
Re
stri
cti
on
FX R
isk
Ye
sP
ote
nti
all
yY
es
Po
ten
tia
lly
No
N
o
FIG
UR
E 3
9: C
RO
SS
BO
RD
ER
GU
AR
AN
TE
ES
So
urc
e: P
BO
C, A
NZ
CR
OS
SB
OR
DE
R G
UA
RA
NT
EE
S
Cro
ss-b
ord
er
gu
ara
nte
es
we
re r
olle
d o
ut
to p
an
Ch
ina
in J
un
e 2
01
4, p
rio
r to
wh
ich
it w
as
on
ly a
llow
ed
in t
he
SF
TZ
as
a p
ilot
pro
gra
m. T
his
so
luti
on
do
es
no
t in
clu
de
ph
ysic
al c
ash
mo
vem
en
t. In
ste
ad
, th
e C
hin
a s
ub
sid
iary
ca
n u
se it
s fu
nd
s in
Ch
ina
to s
up
po
rt it
s re
late
d c
om
pa
nie
s’ b
orr
ow
ing
ove
rse
as.
Th
ere
are
pro
s a
nd
co
ns
for
ea
ch s
olu
tio
n, w
hic
h w
ill b
e d
ete
rmin
ed
ba
sed
on
th
e c
om
pa
ny
ne
ed
s. T
he
ta
ble
be
low
su
mm
ari
ses
the
co
nsi
de
rati
on
s o
f e
ach
so
luti
on
. Th
e v
ari
ed
re
gu
lati
on
s a
nd
un
fam
ilia
rity
of
do
ing
bu
sin
ess
in C
hin
a s
ho
uld
be
se
en
as
a
lea
rnin
g e
xpe
rie
nce
in t
he
co
nte
xt o
f th
e s
ign
ifica
nt
op
po
rtu
nit
y th
at
the
Ch
AF
TA r
ep
rese
nts
.
Loan
cur
renc
y:
no re
stric
tion
Repa
ymen
t: of
fsho
re e
ntity
Gua
rant
or
AN
Z Au
stra
lia
CNY
or F
CY S
BLC
CNY
or F
CY D
epos
it
SBLC
: CN
Y or
FCY
Dep
osit:
CN
Yor
FCY
Repa
ymen
tLo
an
draw
dow
n
AN
Z Ch
ina
Aust
ralia
n En
tity
Ch
ina
Off
sho
re
71
71
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
AP
PE
ND
ICE
S
No
tice
Pre
vio
us
req
uir
em
en
ts
Min
imum
regi
ster
ed c
apita
lN
il (e
xce
pti
on
s a
pp
ly)
Ge
ne
rally
un
de
rsto
od
as
RM
B 1
00
,00
0
Initi
al c
apita
l con
trib
utio
nN
il>
15
% o
r 2
0%
Mon
etar
y ca
pita
l con
trib
utio
nN
il>
30
%
Tim
efra
me
of c
apita
l con
trib
utio
nN
il•
Wit
hin
6 m
on
ths,
if p
aid
in a
lum
p s
um
;
• W
ith
in 2
or
3 y
ea
rs, i
f p
aid
by
inst
alm
en
ts, w
ith
th
e fi
rst
inst
alm
en
t
be
pa
id w
ith
in 3
mo
nth
s
Cap
ital i
ncre
ase
Nil
Firs
t in
sta
lme
nt
sha
ll n
ot
be
less
th
an
20
% o
f th
e n
ew
ly in
cre
ase
d
reg
iste
red
ca
pit
al
Cap
ital d
ecre
ase
Nil*
Aft
er
cap
ita
l de
cre
ase
, th
e r
eg
iste
red
ca
pit
al m
ust
no
t b
e le
ss
tha
n t
he
sta
tuto
ry m
inim
um
* T
his
is n
ot
pro
vid
ed in
th
e N
oti
ce b
ut
is b
ase
d o
n A
NZ
’s t
elep
ho
ne
con
sult
ati
on
wit
h M
OF
CO
M.
So
urc
e: M
inte
r E
llis
on
Tota
l in
ve
stm
en
t (U
SD
)R
ati
o o
f th
e r
eg
iste
red
ca
pit
al
< 3
mill
ion
no
less
th
an
7/1
0
3 t
o 1
0 m
illio
n (
incl
usi
ve)
no
less
th
an
1/2
10
to
30
mill
ion
(in
clu
sive
)n
o le
ss t
ha
n 2
/5
> 3
0 m
illio
nn
o le
ss t
ha
n 1
/3
So
urc
e: M
inte
r E
llis
on
Ind
ust
rie
sM
inim
um
re
gis
tere
d c
ap
ita
l re
qu
ire
me
nt
Trav
elR
MB
30
0,0
00
Join
t sto
ck c
omp
anie
sR
MB
30
mill
ion
Join
t ven
ture
fore
ign
trad
e co
mp
any
RM
B 1
00
mill
ion
Insu
ranc
eR
MB
20
0 m
illio
n
Bank
ing
RM
B 1
bill
ion
Tele
com
RM
B 1
mill
ion
, or
RM
B 1
0 m
illio
n o
r R
MB
1 b
illio
n
(it
may
va
ry d
ep
en
din
g o
n b
usi
ne
ss o
pe
rati
on
sco
pe
)
Inte
rnat
iona
l fre
ight
forw
ardi
ngR
MB
2 m
illio
n f
or
lan
d t
ran
spo
rta
tio
n, R
MB
3 m
illio
n f
or
air
tra
nsp
ort
ati
on
an
d R
MB
5 m
illio
n f
or
ma
rin
e t
ran
spo
rta
tio
n
Pub
lishi
ngR
MB
5 m
illio
n o
r R
MB
10
mill
ion
de
pe
nd
ing
on
sp
eci
fic
bu
sin
ess
Inve
stm
ent C
omp
any
US
D 3
0 m
illio
n
Exce
ptio
ns to
min
imum
regi
ster
ed c
apita
l
Th
e N
oti
ce a
bo
lish
es
the
re
qu
ire
me
nt
of
min
imu
m r
eg
iste
red
ca
pit
al u
nle
ss it
is o
the
rwis
e r
eq
uir
ed
by
law
s o
r re
gu
lati
on
s
for
spe
cifi
c se
cto
rs. A
cco
rdin
g t
o M
inte
r E
lliso
n, s
pe
cifi
c m
inim
um
re
gis
tere
d c
ap
ita
l re
qu
ire
me
nts
are
sti
ll in
pla
ce f
or
fore
ign
inve
stm
en
t in
th
e f
ollo
win
g s
ele
cte
d in
du
stri
es:
Ratio
bet
wee
n re
gist
ered
cap
ital a
nd to
tal i
nves
tmen
t
Alt
ho
ug
h t
he
No
tice
ab
olis
he
s th
e r
eq
uir
em
en
t o
f m
inim
um
ca
pit
al,
the
sta
tuto
ry r
eq
uir
em
en
ts o
n t
he
ra
tio
be
twe
en
th
e
reg
iste
red
ca
pit
al a
nd
th
e t
ota
l in
vest
me
nt
of
an
FIE
co
nti
nu
e t
o b
e in
eff
ec
t:
Ap
pen
dice
s
73
73
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
Key
Con
trib
utor
s
Mar
k G
anz
Dir
ec
tor,
Clie
nt
Insi
gh
ts &
So
luti
on
s
Ma
rk.G
an
z@a
nz.
com
Mic
hael
Whi
tehe
ad
Dir
ec
tor,
Clie
nt
Insi
gh
ts &
So
luti
on
s
Mic
ha
el.W
hit
eh
ea
d@
an
z.co
m
Jaso
n Q
i
Dir
ec
tor,
Clie
nt
Insi
gh
ts &
So
luti
on
s
Jaso
n.Q
i@a
nz.
com
Kevi
n W
ong
Dir
ec
tor,
Clie
nt
Insi
gh
ts &
So
luti
on
s
Ke
vin
.Wo
ng
@a
nz.
com
Just
in F
abo
Se
nio
r E
con
om
ist,
AN
Z R
ese
arc
h
Just
in.F
ab
o@
an
z.co
m
Ab
out C
lient
Insi
ghts
& S
olut
ions
Clie
nt
Insi
gh
ts a
nd
So
luti
on
s (C
IS)
is a
t th
e f
ore
fro
nt
of
de
velo
pin
g a
nd
dis
sem
ina
tin
g in
telle
ctu
al c
ap
ita
l
for
the
be
ne
fit
of
AN
Z’s
Inst
itu
tio
na
l an
d C
orp
ora
te
Ba
nki
ng
clie
nts
.
Th
e t
ea
m u
tilis
es
corp
ora
te fi
na
nce
, in
du
stry
an
aly
sis,
an
d b
ig d
ata
te
chn
iqu
es
to d
eve
lop
ta
ilore
d c
ap
ita
l
stru
ctu
re, r
isk
ma
na
ge
me
nt,
an
d w
ork
ing
ca
pit
al s
olu
tio
ns.
Ad
dit
ion
ally
, ou
r in
du
stry
, ma
rke
t e
ven
t a
nd
re
gu
lato
ry
an
aly
sis
pro
vid
e p
red
icti
ve a
na
lysi
s a
nd
ass
oci
ate
d
solu
tio
ns
acr
oss
all
ind
ust
ry s
ec
tors
.
Wit
h a
n o
n t
he
gro
un
d p
rese
nce
in A
ust
ralia
, Ne
w Z
ea
lan
d,
Sin
ga
po
re, H
on
g K
on
g, L
on
do
n, N
ew
Yo
rk a
nd
Ind
ia,
CIS
is r
eso
urc
ed
to
ide
nti
fy a
nd
me
et
ou
r cl
ien
t’s
ne
ed
s.
Ab
out A
NZ
Rese
arch
AN
Z R
ese
arc
h u
nd
ert
ake
s e
con
om
ic, fi
na
nci
al m
ark
et
an
d c
om
mo
dit
y re
sea
rch
acr
oss
th
e A
sia
n r
eg
ion
. Th
e
tea
m f
ocu
ses
on
fo
reca
stin
g a
nd
th
e a
na
lysi
s o
f e
con
om
ic
con
dit
ion
s a
s w
ell
as
ge
ne
rati
ng
inve
stm
en
t id
ea
s a
nd
stra
teg
ies
for
clie
nts
.
Mor
e in
form
atio
n
htt
p:/
/in
site
s.a
nz.
com
/ch
ina
ga
tew
ay
Glo
ssar
y of
Ter
ms
Ab
bre
via
tio
n
Term
AC
BC
A
ust
ralia
Ch
ina
Bu
sin
ess
Co
un
cil
AU
D
Au
stra
lian
Do
llar
AIH
W
Au
stra
lian
Inst
itu
te o
f H
ea
lth
an
d W
elf
are
BS
E
Bo
vin
e S
po
ng
ifo
rm E
nce
ph
alo
pa
thy
BM
I B
usi
ne
ss M
on
ito
r In
tern
ati
on
al
Ch
AF
TA
C
hin
a A
ust
ralia
Fre
e T
rad
e A
gre
em
en
t
CIR
C
Ch
ina
Insu
ran
ce R
eg
ula
tory
Co
mm
issi
on
CS
RC
C
hin
a S
ecu
riti
es
Re
gu
lato
ry C
om
mis
sio
n
CN
Y
Ch
ine
se Y
ua
n
CM
I C
om
me
rcia
l Mo
tor
Insu
ran
ces
CT
PL
C
om
pu
lso
ry T
hir
d-P
art
y Li
ab
ility
DFA
T
De
pa
rtm
en
t o
f Fo
reig
n A
ffa
irs
an
d T
rad
e
EM
A
En
terp
rise
Mig
rati
on
Ag
ree
me
nts
EC
A
Exp
ort
Co
un
cil o
f A
ust
ralia
EF
IC
Exp
ort
Fin
an
ce a
nd
Insu
ran
ce C
orp
ora
tio
n
FM
D
Foo
t a
nd
Mo
uth
Dis
ea
se
FC
Y
Fore
ign
Cu
rre
nc
y
FD
I Fo
reig
n D
ire
ct
Inve
stm
en
t
FIR
B
Fore
ign
Inve
stm
en
t R
ev
iew
Bo
ard
FIE
Fo
reig
n In
vest
or
En
tity
Ab
bre
via
tio
n
Term
FT
A
Fre
e T
rad
e A
gre
em
en
t
MO
FC
OM
M
inis
try
of
Co
mm
erc
e
ND
RC
N
ati
on
al D
eve
lop
me
nt
an
d R
efo
rm C
om
mis
sio
n
NZ
D
Ne
w Z
ea
lan
d D
olla
r
the
No
tice
N
oti
ce o
f Im
pro
vem
en
ts o
n F
ore
ign
Inve
stm
en
t E
xam
ina
tio
n M
an
ag
em
en
t
PO
BO
P
ay O
n B
eh
alf
Of
PB
OC
P
eo
ple
’s B
an
k o
f C
hin
a
PR
C
Pe
op
le’s
Re
pu
blic
of
Ch
ina
RO
BO
R
ece
ive
On
Be
ha
lf O
f
RM
B
Re
nm
inb
i
RQ
FII
R
MB
Qu
alifi
ed
Fo
reig
n In
stit
uti
on
al I
nve
sto
r
SF
TZ
S
ha
ng
ha
i Fre
e T
rad
e Z
on
e
SM
P
Ski
mm
ed
Milk
Po
wd
er
SB
LC
S
tan
db
y Le
tte
r o
f C
red
it
SA
FE
S
tate
Ad
min
istr
ati
on
of
Fore
ign
Exc
ha
ng
e
SO
E
Sta
te O
wn
ed
En
terp
rise
UH
T
Ult
ra-H
igh
Te
mp
era
ture
US
D
Un
ite
d S
tate
s D
olla
r
WM
P
Wh
ole
Milk
Po
wd
er
75
75
AN
Z O
PP
OR
TU
NIT
Y C
HIN
AA
NZ
OP
PO
RT
UN
ITY
CH
INA
IMP
OR
TAN
T N
OT
ICE
Th
e d
istr
ibu
tio
n o
f th
is d
ocu
me
nt
or
stre
amin
g o
f th
is v
ide
o b
road
cast
(as
app
licab
le, “
pu
blic
atio
n”)
may
be
re
stri
cte
d b
y la
w in
ce
rtai
n ju
risd
icti
on
s. P
ers
on
s
wh
o r
ece
ive
th
is p
ub
licat
ion
mu
st i
nfo
rm t
he
mse
lve
s ab
ou
t an
d o
bse
rve
all
rele
van
t re
stri
ctio
ns.
Dis
cla
ime
r fo
r a
ll ju
risd
icti
on
s, w
he
re c
on
ten
t is
au
tho
red
by
AN
Z R
ese
arc
h:
Exc
ep
t if
oth
erw
ise
sp
eci
fie
d i
n s
ect
ion
3 b
elo
w,
this
pu
blic
atio
n i
s is
sue
d a
nd
dis
trib
ute
d
in
you
r co
un
try/
reg
ion
b
y A
ust
ralia
an
d
Ne
w
Ze
alan
d
Ban
kin
g
Gro
up
Lim
ite
d (
AB
N 1
1 0
05
35
7 5
22
) (“
AN
Z”)
, on
th
e b
asis
th
at i
t is
on
ly f
or
the
info
rmat
ion
of
the
sp
eci
fie
d r
eci
pie
nt
or
pe
rmit
ted
use
r o
f th
e r
ele
van
t w
eb
site
(co
llect
ive
ly,
“re
cip
ien
t”).
Th
is p
ub
licat
ion
may
no
t b
e r
ep
rod
uce
d,
dis
trib
ute
d
or
pu
blis
he
d b
y an
y re
cip
ien
t fo
r an
y p
urp
ose
. It
is g
en
era
l in
form
atio
n a
nd
has
be
en
pre
par
ed
wit
ho
ut
taki
ng
into
acc
ou
nt
the
ob
ject
ive
s, fi
nan
cial
sit
uat
ion
or
ne
ed
s o
f an
y p
ers
on
. N
oth
ing
in
th
is p
ub
licat
ion
is
inte
nd
ed
to
be
an
off
er
to
sell,
or
a so
licit
atio
n o
f an
off
er
to b
uy,
an
y p
rod
uct
, in
stru
me
nt
or
inve
stm
en
t,
to e
ffe
ct a
ny
tran
sact
ion
or
to c
on
clu
de
an
y le
gal
act
of
any
kin
d. I
f, d
esp
ite
th
e
fore
go
ing
, an
y se
rvic
es
or
pro
du
cts
refe
rre
d t
o in
th
is p
ub
licat
ion
are
de
em
ed
to
be
off
ere
d in
th
e ju
risd
icti
on
in w
hic
h t
his
pu
blic
atio
n is
re
ceiv
ed
or
acce
sse
d, n
o
such
se
rvic
e o
r p
rod
uct
is
inte
nd
ed
fo
r n
or
avai
lab
le t
o p
ers
on
s re
sid
en
t in
th
at
juri
sdic
tio
n if
it w
ou
ld b
e c
on
trad
icto
ry t
o lo
cal l
aw o
r re
gu
lati
on
. Su
ch lo
cal l
aws,
reg
ula
tio
ns
and
oth
er
limit
atio
ns
alw
ays
app
ly w
ith
no
n-e
xclu
sive
juri
sdic
tio
n o
f
loca
l co
urt
s. C
ert
ain
fin
anci
al p
rod
uct
s m
ay b
e s
ub
ject
to
man
dat
ory
cle
arin
g,
reg
ula
tory
re
po
rtin
g a
nd
/or
oth
er
rela
ted
ob
ligat
ion
s. T
he
se o
blig
atio
ns
may
vary
by
juri
sdic
tio
n a
nd
be
su
bje
ct t
o f
req
ue
nt
ame
nd
me
nt.
Be
fore
mak
ing
an
inve
stm
en
t d
eci
sio
n,
reci
pie
nts
sh
ou
ld s
ee
k in
de
pe
nd
en
t fi
nan
cial
, le
gal
, ta
x
and
oth
er
rele
van
t ad
vice
hav
ing
re
gar
d t
o t
he
ir p
arti
cula
r ci
rcu
mst
ance
s. T
he
vie
ws
and
re
com
me
nd
atio
ns
exp
ress
ed
in
th
is p
ub
licat
ion
are
th
e a
uth
or’s
.
Th
ey
are
bas
ed
on
info
rmat
ion
kn
ow
n b
y th
e a
uth
or
and
on
so
urc
es
wh
ich
th
e
auth
or
be
lieve
s to
be
re
liab
le, b
ut
may
in
volv
e m
ate
rial
ele
me
nts
of
sub
ject
ive
jud
ge
me
nt
and
an
alys
is.
Un
less
sp
eci
fica
lly s
tate
d o
the
rwis
e:
the
y ar
e c
urr
en
t
on
th
e d
ate
of
this
pu
blic
atio
n a
nd
are
su
bje
ct t
o c
han
ge
wit
ho
ut
no
tice
; an
d,
all
pri
ce i
nfo
rmat
ion
is
ind
icat
ive
on
ly. A
ny
of
the
vie
ws
and
re
com
me
nd
atio
ns
wh
ich
co
mp
rise
est
imat
es,
fore
cast
s o
r oth
er p
roje
ctio
ns,
are
su
bje
ct to
sig
nifi
can
t
un
cert
ain
tie
s an
d c
on
tin
ge
nci
es
that
can
no
t re
aso
nab
ly b
e a
nti
cip
ate
d. O
n t
his
bas
is, s
uch
vie
ws
and
re
com
me
nd
atio
ns
may
no
t al
way
s b
e a
chie
ved
or
pro
ve t
o
be
co
rre
ct. I
nd
icat
ion
s o
f pas
t p
erf
orm
ance
in t
his
pu
blic
atio
n w
ill n
ot
ne
cess
arily
be
re
pe
ate
d in
th
e f
utu
re. N
o r
ep
rese
nta
tio
n is
be
ing
mad
e t
hat
an
y in
vest
me
nt
will
or
is li
kely
to
ach
ieve
pro
fits
or
loss
es
sim
ilar
to t
ho
se a
chie
ved
in t
he
pas
t, o
r
that
sig
nifi
can
t lo
sse
s w
ill b
e a
void
ed
. Ad
dit
ion
ally
, th
is p
ub
licat
ion
may
co
nta
in
‘forw
ard
loo
kin
g s
tate
me
nts
’. Act
ual
eve
nts
or
resu
lts
or
actu
al p
erf
orm
ance
may
diff
er
mat
eri
ally
fro
m t
ho
se r
efl
ect
ed
or
con
tem
pla
ted
in
su
ch f
orw
ard
lo
oki
ng
stat
em
en
ts. A
ll in
vest
me
nts
en
tail
a ri
sk a
nd
may
re
sult
in b
oth
pro
fits
an
d lo
sse
s.
Fore
ign
cu
rre
nc
y ra
tes
of
exc
han
ge
may
ad
vers
ely
aff
ect
th
e v
alu
e,
pri
ce o
r
inco
me
of
any
pro
du
cts
or
serv
ice
s d
esc
rib
ed
in
th
is p
ub
licat
ion
. Th
e p
rod
uct
s
and
se
rvic
es
de
scri
be
d i
n t
his
pu
blic
atio
n a
re n
ot
suit
able
fo
r al
l in
vest
ors
, an
d
tran
sact
ing
in
th
ese
pro
du
cts
or
serv
ice
s m
ay b
e c
on
sid
ere
d r
isky
. AN
Z a
nd
its
rela
ted
bo
die
s co
rpo
rate
an
d a
ffilia
tes,
an
d t
he
offi
cers
, em
plo
yee
s, c
on
trac
tors
and
ag
en
ts o
f e
ach
of
the
m (
incl
ud
ing
th
e a
uth
or)
(“A
ffilia
tes”
), d
o n
ot
mak
e
any
rep
rese
nta
tio
n a
s to
th
e a
ccu
rac
y, c
om
ple
ten
ess
or
curr
en
cy
of
the
vie
ws
or
reco
mm
en
dat
ion
s e
xpre
sse
d in
th
is p
ub
licat
ion
. Ne
ith
er
AN
Z n
or
its
Affi
liate
s
acce
pt
any
resp
on
sib
ility
to
in
form
yo
u o
f an
y m
atte
r th
at s
ub
seq
ue
ntl
y co
me
s
to t
he
ir n
oti
ce, w
hic
h m
ay a
ffe
ct t
he
acc
ura
cy,
co
mp
lete
ne
ss o
r cu
rre
nc
y o
f th
e
info
rmat
ion
in t
his
pu
blic
atio
n.
Exc
ep
t as
re
qu
ire
d b
y la
w, a
nd
on
ly t
o t
he
ext
en
t so
re
qu
ire
d: n
eit
he
r A
NZ
no
r it
s
Affi
liate
s w
arra
nt
or g
uar
ante
e t
he
pe
rfo
rman
ce o
f an
y o
f th
e p
rod
uct
s o
r se
rvic
es
de
scri
be
d i
n t
his
pu
blic
atio
n o
r an
y re
turn
on
an
y as
soci
ate
d i
nve
stm
en
t; a
nd
,
AN
Z a
nd
its
Affi
liate
s e
xpre
ssly
dis
clai
m a
ny
resp
on
sib
ility
an
d s
hal
l no
t b
e li
able
for
any
loss
, d
amag
e,
clai
m,
liab
ility
, p
roce
ed
ing
s, c
ost
or
exp
en
se (
“Lia
bili
ty”)
aris
ing
dir
ect
ly o
r in
dir
ect
ly a
nd
wh
eth
er
in t
ort
(in
clu
din
g n
eg
lige
nce
), co
ntr
act,
eq
uit
y o
r o
the
rwis
e o
ut
of
or
in c
on
ne
ctio
n w
ith
th
is p
ub
licat
ion
.
If
this
p
ub
licat
ion
h
as
be
en
d
istr
ibu
ted
b
y e
lect
ron
ic
tran
smis
sio
n,
such
as
e-m
ail,
the
n s
uch
tra
nsm
issi
on
can
no
t b
e g
uar
ante
ed
to
be
se
cure
or
err
or-
fre
e
as i
nfo
rmat
ion
co
uld
be
in
terc
ep
ted
, co
rru
pte
d,
lost
, d
est
roye
d,
arri
ve l
ate
or
inco
mp
lete
, or
con
tain
vir
use
s. A
NZ
an
d i
ts A
ffilia
tes
do
no
t ac
cep
t an
y Li
abili
ty
as a
re
sult
of
ele
ctro
nic
tra
nsm
issi
on
of
this
pu
blic
atio
n.
AN
Z a
nd
its
Affi
liate
s m
ay h
ave
an
inte
rest
in th
e s
ub
ject
mat
ter o
f th
is p
ub
licat
ion
as fo
llow
s:
• T
he
y m
ay r
ece
ive
fe
es
fro
m c
ust
om
ers
fo
r d
eal
ing
in t
he
pro
du
cts
or
serv
ice
s
de
scri
be
d in
th
is p
ub
licat
ion
, an
d t
he
ir s
taff
an
d in
tro
du
cers
of
bu
sin
ess
may
shar
e in
su
ch fe
es
or
rece
ive
a b
on
us
that
may
be
infl
ue
nce
d b
y to
tal s
ale
s.
• T
he
y o
r th
eir
cu
sto
me
rs m
ay h
ave
or
hav
e h
ad i
nte
rest
s o
r lo
ng
or
sho
rt
po
siti
on
s in
th
e p
rod
uct
s o
r se
rvic
es
de
scri
be
d in
th
is p
ub
licat
ion
, an
d m
ay a
t
any
tim
e m
ake
pu
rch
ase
s an
d/o
r sa
les
in t
he
m a
s p
rin
cip
al o
r ag
en
t.
• T
he
y m
ay
act
or
hav
e
acte
d
as
mar
ket-
mak
er
in
pro
du
cts
de
scri
be
d
in t
his
pu
blic
atio
n.
AN
Z a
nd
its
Affi
liate
s m
ay r
ely
on
info
rmat
ion
bar
rie
rs a
nd
oth
er
arra
ng
em
en
ts t
o
con
tro
l th
e fl
ow
of
info
rmat
ion
co
nta
ine
d in
on
e o
r m
ore
bu
sin
ess
are
as w
ith
in
AN
Z o
r w
ith
in it
s A
ffilia
tes
into
oth
er
bu
sin
ess
are
as o
f A
NZ
or
of
its
Affi
liate
s.
Ple
ase
co
nta
ct
you
r A
NZ
p
oin
t o
f co
nta
ct
wit
h
any
qu
est
ion
s ab
ou
t th
is
pu
blic
atio
n in
clu
din
g fo
r fu
rth
er
info
rmat
ion
on
th
ese
dis
clo
sure
s o
f in
tere
st.
Co
un
try
/re
gio
n s
pe
cifi
c in
form
ati
on
:
Au
stra
lia
. T
his
pu
blic
atio
n i
s d
istr
ibu
ted
in
Au
stra
lia b
y A
NZ
. A
NZ
ho
lds
an
Au
stra
lian
Fi
nan
cial
S
erv
ice
s lic
en
ce
no
. 2
34
52
7.
A
cop
y o
f A
NZ
’s
Fin
anci
al
Se
rvic
es
Gu
ide
is
avai
lab
le a
t h
ttp
://w
ww
.an
z.co
m/d
ocu
me
nts
/AU
/ab
ou
tAN
Z/
Fin
anci
alS
erv
ice
sGu
ide
.pd
f an
d
is
avai
lab
le
up
on
re
qu
est
fr
om
yo
ur
AN
Z
po
int
of
con
tact
. If
tra
din
g s
trat
eg
ies
or
reco
mm
en
dat
ion
s ar
e i
ncl
ud
ed
in
th
is
pu
blic
atio
n, t
he
y ar
e s
ole
ly f
or
the
in
form
atio
n o
f ‘w
ho
lesa
le c
lien
ts’ (
as d
efi
ne
d
in s
ect
ion
76
1G
of
the
Co
rpo
rati
on
s A
ct 2
00
1 C
th).
Pe
rso
ns
wh
o r
ece
ive
th
is
pu
blic
atio
n m
ust
info
rm t
he
mse
lve
s ab
ou
t an
d o
bse
rve
all
rele
van
t re
stri
ctio
ns.
Bra
zil.
Th
is p
ub
licat
ion
is
dis
trib
ute
d i
n B
razi
l b
y A
NZ
on
a c
ross
bo
rde
r b
asis
and
on
ly f
ollo
win
g r
eq
ue
st b
y th
e r
eci
pie
nt.
No
se
curi
tie
s ar
e b
ein
g o
ffe
red
or
sold
in B
razi
l un
de
r th
is p
ub
licat
ion
, an
d n
o s
ecu
riti
es
hav
e b
ee
n a
nd
will
no
t b
e
reg
iste
red
wit
h t
he
Se
curi
tie
s C
om
mis
sio
n -
CV
M.
Bru
ne
i. J
ap
an
. K
uw
ait
. M
ala
ysi
a.
Sw
itze
rla
nd
. Ta
iwa
n.
Th
is p
ub
licat
ion
is
dis
trib
ute
d in
eac
h o
f B
run
ei,
Jap
an, K
uw
ait,
Mal
aysi
a, S
wit
zerl
and
an
d T
aiw
an b
y
AN
Z o
n a
cro
ss-b
ord
er
bas
is.
Eu
rop
ea
n
Eco
no
mic
A
rea
(“
EE
A”)
: U
nit
ed
K
ing
do
m.
AN
Z
in
the
U
nit
ed
Kin
gd
om
is
auth
ori
sed
by
the
Pru
de
nti
al R
eg
ula
tio
n A
uth
ori
ty (
“PR
A”)
. Su
bje
ct
to r
eg
ula
tio
n b
y th
e F
inan
cial
Co
nd
uct
Au
tho
rity
(“F
CA
”) a
nd
lim
ite
d r
eg
ula
tio
n
by
the
PR
A.
De
tails
ab
ou
t th
e e
xte
nt
of
ou
r re
gu
lati
on
by
the
PR
A a
re a
vaila
ble
fro
m u
s o
n r
eq
ue
st. T
his
pu
blic
atio
n is
dis
trib
ute
d in
th
e U
nit
ed
Kin
gd
om
by
AN
Z
sole
ly f
or
the
info
rmat
ion
of
pe
rso
ns
wh
o w
ou
ld c
om
e w
ith
in t
he
FC
A d
efi
nit
ion
of “
elig
ible
co
un
terp
arty
” or “
pro
fess
ion
al c
lien
t”. I
t is
no
t in
ten
de
d fo
r an
d m
ust
no
t
be
dis
trib
ute
d t
o a
ny
pe
rso
n w
ho
wo
uld
co
me
wit
hin
th
e F
CA
de
fin
itio
n o
f “re
tail
clie
nt”
. No
thin
g h
ere
exc
lud
es
or
rest
rict
s an
y d
uty
or
liab
ility
to
a c
ust
om
er
wh
ich
AN
Z m
ay h
ave
un
de
r th
e U
K F
inan
cial
Se
rvic
es
and
Mar
kets
Act
20
00
or
un
de
r th
e
reg
ula
tory
sys
tem
as
de
fin
ed
in t
he
Ru
les
of
the
PR
A a
nd
th
e F
CA
. Ge
rma
ny.
Th
is
pu
blic
atio
n is
dis
trib
ute
d in
Ge
rman
y b
y th
e F
ran
kfu
rt B
ran
ch o
f AN
Z s
ole
ly fo
r th
e
info
rmat
ion
of i
ts c
lien
ts. O
the
r E
EA
co
un
trie
s. T
his
pu
blic
atio
n is
dis
trib
ute
d in
the
EEA
by
AN
Z B
ank
(Eu
rop
e)
Lim
ite
d (
“AN
ZB
EL”)
wh
ich
is a
uth
ori
sed
by
the
PR
A a
nd
reg
ula
ted
by
the
FC
A a
nd
th
e P
RA
in t
he
Un
ite
d K
ing
do
m, t
o p
ers
on
s w
ho
wo
uld
com
e w
ith
in t
he
FC
A d
efi
nit
ion
of “
elig
ible
co
un
terp
arty
” or “
pro
fess
ion
al c
lien
t” in
oth
er
cou
ntr
ies
in t
he
EEA
. Th
is p
ub
licat
ion
is d
istr
ibu
ted
in t
ho
se c
ou
ntr
ies
sole
ly
for
the
info
rmat
ion
of
such
pe
rso
ns
up
on
th
eir
re
qu
est
. It
is n
ot
inte
nd
ed
fo
r, an
d
mu
st n
ot
be
dis
trib
ute
d t
o, a
ny
pe
rso
n in
th
ose
co
un
trie
s w
ho
wo
uld
co
me
wit
hin
the
FC
A d
efi
nit
ion
of “
reta
il cl
ien
t”.
Fij
i.
For
Fiji
reg
ula
tory
p
urp
ose
s,
this
p
ub
lica
tio
n
an
d
an
y v
iew
s a
nd
reco
mm
en
da
tio
ns
are
no
t to
be
de
em
ed
as
inve
stm
en
t a
dv
ice
. Fi
ji in
vest
ors
mu
st
see
k lic
en
sed
p
rofe
ssio
na
l a
dv
ice
sh
ou
ld
the
y w
ish
to
m
ake
a
ny
inve
stm
en
t in
re
lati
on
to
th
is p
ub
lica
tio
n.
Ho
ng
Ko
ng
. T
his
pu
blic
atio
n i
s d
istr
ibu
ted
in
Ho
ng
Ko
ng
by
the
Ho
ng
Ko
ng
bra
nch
of
AN
Z,
wh
ich
is
reg
iste
red
at
the
Ho
ng
Ko
ng
Mo
ne
tary
Au
tho
rity
to
con
du
ct T
ype
1 (
de
alin
g i
n s
ecu
riti
es)
, Typ
e 4
(ad
visi
ng
on
se
curi
tie
s) a
nd
Typ
e
6
(ad
visi
ng
o
n
corp
ora
te
fin
ance
) re
gu
late
d
acti
viti
es.
Th
e
con
ten
ts
of
this
pu
blic
atio
n h
ave
no
t b
ee
n r
evi
ew
ed
by
any
reg
ula
tory
au
tho
rity
in H
on
g K
on
g. I
f
in d
ou
bt
abo
ut
the
co
nte
nts
of
this
pu
blic
atio
n, y
ou
sh
ou
ld o
bta
in in
de
pe
nd
en
t
pro
fess
ion
al a
dvi
ce.
Ind
ia.
Th
is p
ub
licat
ion
is
dis
trib
ute
d i
n I
nd
ia b
y A
NZ
on
a c
ross
-bo
rde
r b
asis
. If
this
pu
blic
atio
n is
re
ceiv
ed
in In
dia
, on
ly y
ou
(th
e s
pe
cifi
ed
re
cip
ien
t) m
ay p
rin
t it
pro
vid
ed
th
at b
efo
re d
oin
g s
o, y
ou
sp
eci
fy o
n it
yo
ur
nam
e a
nd
pla
ce o
f pri
nti
ng
.
Furt
he
r co
pyi
ng
or
du
plic
atio
n o
f th
is p
ub
licat
ion
is s
tric
tly
pro
hib
ite
d.
Ne
w Z
ea
lan
d.
Th
is p
ub
licat
ion
is
inte
nd
ed
to
be
of
a g
en
era
l n
atu
re, d
oe
s n
ot
take
in
to a
cco
un
t yo
ur
fin
anci
al s
itu
atio
n o
r g
oal
s, a
nd
is
no
t a
pe
rso
nal
ise
d
advi
ser
serv
ice
un
de
r th
e F
inan
cial
Ad
vise
rs A
ct 2
00
8.
Om
an
. Th
is p
ub
licat
ion
has
be
en
pre
par
ed
by
AN
Z. A
NZ
ne
ith
er
has
a r
eg
iste
red
bu
sin
ess
pre
sen
ce n
or
a re
pre
sen
tati
ve o
ffice
in O
man
an
d d
oe
s n
ot
un
de
rtak
e
ban
kin
g b
usi
ne
ss o
r p
rovi
de
fin
anci
al s
erv
ice
s in
Om
an. C
on
seq
ue
ntl
y A
NZ
is n
ot
reg
ula
ted
by
eit
he
r th
e C
en
tral
Ban
k o
f Om
an o
r Om
an’s
Cap
ital
Mar
ket
Au
tho
rity
.
Th
e i
nfo
rmat
ion
co
nta
ine
d i
n t
his
pu
blic
atio
n i
s fo
r d
iscu
ssio
n p
urp
ose
s o
nly
and
ne
ith
er
con
stit
ute
s an
off
er
of
secu
riti
es
in O
man
as
con
tem
pla
ted
by
the
Co
mm
erc
ial C
om
pan
ies
Law
of
Om
an (
Ro
yal D
ecr
ee
4/7
4)
or
the
Cap
ital
Mar
ket
Law
of
Om
an (
Ro
yal D
ecr
ee
80
/98
), n
or
do
es
it c
on
stit
ute
an
off
er
to s
ell,
or
the
solic
itat
ion
of
any
off
er
to b
uy
no
n-O
man
i se
curi
tie
s in
Om
an a
s co
nte
mp
late
d
by
Art
icle
13
9 o
f th
e E
xecu
tive
Re
gu
lati
on
s to
th
e C
apit
al M
arke
t La
w (
issu
ed
vid
e C
MA
De
cisi
on
1/2
00
9).
AN
Z d
oe
s n
ot
solic
it b
usi
ne
ss in
Om
an a
nd
th
e o
nly
circ
um
stan
ces
in w
hic
h A
NZ
se
nd
s in
form
atio
n o
r m
ate
rial
de
scri
bin
g fi
nan
cial
pro
du
cts
or
fin
anci
al s
erv
ice
s to
re
cip
ien
ts i
n O
man
, is
wh
ere
su
ch i
nfo
rmat
ion
or
mat
eri
al h
as b
ee
n r
eq
ue
ste
d f
rom
AN
Z a
nd
by
rece
ivin
g t
his
pu
blic
atio
n,
the
pe
rso
n o
r e
nti
ty t
o w
ho
m i
t h
as b
ee
n d
isp
atch
ed
by
AN
Z u
nd
ers
tan
ds,
ackn
ow
led
ge
s an
d a
gre
es
that
th
is p
ub
licat
ion
has
no
t b
ee
n a
pp
rove
d b
y th
e
CB
O, t
he
CM
A o
r an
y o
the
r re
gu
lato
ry b
od
y o
r au
tho
rity
in O
man
. AN
Z d
oe
s n
ot
mar
ket,
off
er,
sell
or
dis
trib
ute
an
y fi
nan
cial
or
inve
stm
en
t p
rod
uct
s o
r se
rvic
es
in
Om
an a
nd
no
su
bsc
rip
tio
n t
o a
ny
secu
riti
es,
pro
du
cts
or
fin
anci
al s
erv
ice
s m
ay
or
will
be
co
nsu
mm
ate
d w
ith
in O
man
. N
oth
ing
co
nta
ine
d i
n t
his
pu
blic
atio
n
is i
nte
nd
ed
to
co
nst
itu
te O
man
i in
vest
me
nt,
le
gal
, ta
x, a
cco
un
tin
g o
r o
the
r
pro
fess
ion
al a
dvi
ce.
Pe
op
le’s
Re
pu
bli
c o
f C
hin
a.
If
and
w
he
n
the
m
ate
rial
ac
com
pan
yin
g
this
pu
blic
atio
n d
oe
s n
ot
on
ly r
ela
te t
o t
he
pro
du
cts
and
/or
serv
ice
s o
f A
ust
ralia
an
d
Ne
w Z
eal
and
Ban
k (C
hin
a) C
om
pan
y Li
mit
ed
(“A
NZ
Ch
ina”
), it
is n
ote
d t
hat
: Th
is
pu
blic
atio
n i
s d
istr
ibu
ted
by
AN
Z o
r an
affi
liate
. N
o a
ctio
n h
as b
ee
n t
ake
n b
y
AN
Z o
r an
y affi
liate
wh
ich
wo
uld
pe
rmit
a p
ub
lic o
ffe
rin
g o
f an
y p
rod
uct
s o
r
serv
ice
s o
f su
ch a
n e
nti
ty o
r d
istr
ibu
tio
n o
r re
-dis
trib
uti
on
of
this
pu
blic
atio
n i
n
the
Pe
op
le’s
Re
pu
blic
of
Ch
ina
(“P
RC
”).
Acc
ord
ing
ly,
the
pro
du
cts
and
se
rvic
es
of
such
en
titi
es
are
no
t b
ein
g o
ffe
red
or
sold
wit
hin
th
e P
RC
by
me
ans
of
this
pu
blic
atio
n o
r an
y o
the
r m
eth
od
. Th
is p
ub
licat
ion
may
no
t b
e d
istr
ibu
ted
, re
-
dis
trib
ute
d o
r p
ub
lish
ed
in t
he
PR
C, e
xce
pt
un
de
r ci
rcu
mst
ance
s th
at w
ill r
esu
lt
in c
om
plia
nce
wit
h a
ny
app
licab
le la
ws
and
re
gu
lati
on
s. If
an
d w
he
n t
he
mat
eri
al
acco
mp
anyi
ng
th
is p
ub
licat
ion
re
late
s to
th
e p
rod
uct
s an
d/o
r se
rvic
es
of
AN
Z
Ch
ina
on
ly,
it i
s n
ote
d t
hat
: Th
is p
ub
licat
ion
is
dis
trib
ute
d b
y A
NZ
Ch
ina
in t
he
Mai
nla
nd
of
the
PR
C.
Qa
tar.
Th
is p
ub
licat
ion
has
no
t b
ee
n, a
nd
will
no
t b
e:
• lo
dg
ed
or
reg
iste
red
wit
h,
or
revi
ew
ed
or
app
rove
d b
y, t
he
Qat
ar C
en
tral
Ban
k (“
QC
B”)
, th
e Q
atar
Fin
anci
al C
en
tre
(“Q
FC
”) A
uth
ori
ty,
QF
C R
eg
ula
tory
Au
tho
rity
or
any
oth
er
auth
ori
ty in
th
e S
tate
of
Qat
ar (
“Qat
ar”)
; or
• au
tho
rise
d o
r lic
en
sed
for
dis
trib
uti
on
in Q
atar
,
• an
d th
e in
form
atio
n c
on
tain
ed
in th
is p
ub
licat
ion
do
es
no
t, a
nd
is n
ot i
nte
nd
ed
to, c
on
stit
ute
a p
ub
lic o
ffe
r o
r o
the
r in
vita
tio
n in
re
spe
ct o
f se
curi
tie
s in
Qat
ar
or
the
QF
C. T
he
fin
anci
al p
rod
uct
s o
r se
rvic
es
de
scri
be
d i
n t
his
pu
blic
atio
n
hav
e n
ot
be
en
, an
d w
ill n
ot
be
:
• re
gis
tere
d w
ith
th
e Q
CB
, Q
FC
Au
tho
rity
, Q
FC
Re
gu
lato
ry A
uth
ori
ty o
r an
y
oth
er
go
vern
me
nta
l au
tho
rity
in Q
atar
; or
• au
tho
rise
d
or
lice
nse
d
for
off
eri
ng
, m
arke
tin
g,
issu
e
or
sale
, d
ire
ctly
o
r
ind
ire
ctly
, in
Qat
ar.
Acc
ord
ing
ly, t
he
fin
anci
al p
rod
uct
s o
r se
rvic
es
de
scri
be
d i
n t
his
pu
blic
atio
n a
re
no
t b
ein
g, a
nd
will
no
t b
e, o
ffe
red
, iss
ue
d o
r so
ld i
n Q
atar
, an
d t
his
pu
blic
atio
n
is n
ot
be
ing
, an
d w
ill n
ot
be
, dis
trib
ute
d i
n Q
atar
. Th
e o
ffe
rin
g, m
arke
tin
g, i
ssu
e
and
sal
e o
f th
e fi
nan
cial
pro
du
cts
or
serv
ice
s d
esc
rib
ed
in
th
is p
ub
licat
ion
an
d
dis
trib
uti
on
of
this
pu
blic
atio
n i
s b
ein
g m
ade
in
, an
d i
s su
bje
ct t
o t
he
law
s,
reg
ula
tio
ns
and
ru
les
of,
juri
sdic
tio
ns
ou
tsid
e o
f Q
atar
an
d t
he
QF
C. R
eci
pie
nts
of
this
pu
blic
atio
n m
ust
ab
ide
by
this
re
stri
ctio
n a
nd
no
t d
istr
ibu
te t
his
pu
blic
atio
n
in b
reac
h o
f th
is r
est
rict
ion
. T
his
pu
blic
atio
n i
s b
ein
g s
en
t/is
sue
d t
o a
lim
ite
d
nu
mb
er
of
inst
itu
tio
nal
an
d/o
r so
ph
isti
cate
d i
nve
sto
rs (
i) u
po
n t
he
ir r
eq
ue
st
and
co
nfi
rmat
ion
th
at t
he
y u
nd
ers
tan
d t
he
sta
tem
en
ts a
bo
ve;
and
(ii)
on
th
e
con
dit
ion
th
at i
t w
ill n
ot
be
pro
vid
ed
to
an
y p
ers
on
oth
er
than
th
e o
rig
inal
reci
pie
nt,
an
d is
no
t fo
r g
en
era
l cir
cula
tio
n a
nd
may
no
t b
e r
ep
rod
uce
d o
r u
sed
for
any
oth
er
pu
rpo
se.
Sin
ga
po
re. T
his
pu
blic
atio
n is
dis
trib
ute
d in
Sin
gap
ore
by
the
Sin
gap
ore
bra
nch
of
AN
Z s
ole
ly fo
r th
e in
form
atio
n o
f “ac
cre
dit
ed
inve
sto
rs”, “
exp
ert
inve
sto
rs” o
r (a
s
the
cas
e m
ay b
e) “
inst
itu
tio
nal
in
vest
ors
” (e
ach
te
rm a
s d
efi
ne
d i
n t
he
Se
curi
tie
s
and
Fu
ture
s A
ct C
ap. 2
89
of
Sin
gap
ore
). A
NZ
is li
cen
sed
in S
ing
apo
re u
nd
er
the
Ban
kin
g A
ct C
ap.
19
of
Sin
gap
ore
an
d i
s e
xem
pte
d f
rom
ho
ldin
g a
fin
anci
al
advi
ser’s
lic
en
ce u
nd
er
Se
ctio
n 2
3(1
)(a)
of
the
Fin
anci
al A
dvi
sers
Act
Cap
. 1
00
of
Sin
gap
ore
. In
re
spe
ct o
f an
y m
atte
rs a
risi
ng
fro
m,
or
in c
on
ne
ctio
n w
ith
th
e
dis
trib
uti
on
of
this
pu
blic
atio
n in
Sin
gap
ore
, co
nta
ct y
ou
r A
NZ
po
int
of
con
tact
.
Un
ite
d A
rab
Em
ira
tes.
Th
is p
ub
licat
ion
is d
istr
ibu
ted
in th
e U
nit
ed
Ara
b E
mir
ate
s
(“U
AE
”) o
r th
e D
ub
ai I
nte
rnat
ion
al F
inan
cial
Ce
ntr
e (
as a
pp
licab
le)
by
AN
Z. T
his
pu
blic
atio
n:
do
es
no
t, a
nd
is
no
t in
ten
de
d t
o c
on
stit
ute
an
off
er
of
secu
riti
es
anyw
he
re in
th
e U
AE
; do
es
no
t co
nst
itu
te, a
nd
is n
ot
inte
nd
ed
to
co
nst
itu
te t
he
carr
yin
g o
n o
r e
ng
age
me
nt
in b
anki
ng
, fin
anci
al a
nd
/or
inve
stm
en
t co
nsu
ltat
ion
bu
sin
ess
in
th
e U
AE
un
de
r th
e r
ule
s an
d r
eg
ula
tio
ns
mad
e b
y th
e C
en
tral
Ban
k
of
the
Un
ite
d A
rab
Em
irat
es,
th
e E
mir
ate
s S
ecu
riti
es
and
Co
mm
od
itie
s A
uth
ori
ty
or
the
Un
ite
d A
rab
Em
irat
es
Min
istr
y o
f E
con
om
y; d
oe
s n
ot,
an
d is
no
t in
ten
de
d
to c
on
stit
ute
an
off
er
of
secu
riti
es
wit
hin
th
e m
ean
ing
of
the
Du
bai
Inte
rnat
ion
al
Fin
anci
al C
en
tre
Mar
kets
Law
No
. 1
2 o
f 2
00
4;
and
, d
oe
s n
ot
con
stit
ute
, an
d i
s
no
t in
ten
de
d t
o c
on
stit
ute
, a
fin
anci
al p
rom
oti
on
, as
de
fin
ed
un
de
r th
e D
ub
ai
Inte
rnat
ion
al F
inan
cial
Ce
ntr
e R
eg
ula
tory
Law
No
. 1
of
20
0.
AN
Z D
IFC
Bra
nch
is r
eg
ula
ted
by
the
Du
bai
Fin
anci
al S
erv
ice
s A
uth
ori
ty (
“DF
SA
”).
Th
e fi
nan
cial
pro
du
cts
or
serv
ice
s d
esc
rib
ed
in
th
is p
ub
licat
ion
are
on
ly a
vaila
ble
to
pe
rso
ns
wh
o q
ual
ify
as “P
rofe
ssio
nal
Clie
nts
” or “
Mar
ket
Co
un
terp
arty
” in
acc
ord
ance
wit
h
the
pro
visi
on
s o
f th
e D
FS
A r
ule
s. I
n a
dd
itio
n,
AN
Z h
as a
re
pre
sen
tati
ve o
ffice
(“A
NZ
Re
pre
sen
tati
ve O
ffice
”) in
Ab
u D
hab
i re
gu
late
d b
y th
e C
en
tral
Ban
k o
f th
e
Un
ite
d A
rab
Em
irat
es.
AN
Z R
ep
rese
nta
tive
Offi
ce is
no
t p
erm
itte
d b
y th
e C
en
tral
Ban
k o
f th
e U
nit
ed
Ara
b E
mir
ate
s to
pro
vid
e a
ny
ban
kin
g s
erv
ice
s to
clie
nts
in
the
UA
E.
Un
ite
d S
tate
s. I
f an
d w
he
n t
his
pu
blic
atio
n i
s re
ceiv
ed
by
any
pe
rso
n i
n t
he
Un
ite
d S
tate
s o
r a
“U.S
. pe
rso
n” (
as d
efi
ne
d in
Re
gu
lati
on
S u
nd
er
the
US
Se
curi
tie
s
Act
of
19
33
, as
ame
nd
ed
) (“
US
Pe
rso
n”)
or
any
pe
rso
n a
ctin
g f
or
the
acc
ou
nt
or
be
ne
fit
of
a U
S P
ers
on
, it
is n
ote
d t
hat
AN
Z S
ecu
riti
es,
Inc.
(“A
NZ
S”)
is a
me
mb
er
of
FIN
RA
(w
ww
.fin
ra.o
rg)
and
re
gis
tere
d w
ith
th
e S
EC
. AN
Z S
’ ad
dre
ss is
27
7 P
ark
Ave
nu
e, 3
1st
Flo
or,
Ne
w Y
ork
, NY
10
17
2, U
SA
(Te
l: +
1 2
12
80
1 9
16
0 F
ax: +
1 2
12
80
1 9
16
3).
Exc
ep
t w
he
re t
his
is
a F
X-
rela
ted
or
com
mo
dit
y-re
late
d p
ub
licat
ion
,
this
pu
blic
atio
n i
s d
istr
ibu
ted
in
th
e U
nit
ed
Sta
tes
by
AN
Z S
(a
wh
olly
ow
ne
d
sub
sid
iary
of
AN
Z),
wh
ich
acc
ep
ts r
esp
on
sib
ility
fo
r it
s co
nte
nt.
In
form
atio
n
on
an
y se
curi
tie
s re
ferr
ed
to
in
th
is p
ub
licat
ion
may
be
ob
tain
ed
fro
m A
NZ
S
up
on
re
qu
est
. A
ny
US
Pe
rso
n r
ece
ivin
g t
his
pu
blic
atio
n a
nd
wis
hin
g t
o e
ffe
ct
tran
sact
ion
s in
an
y se
curi
tie
s re
ferr
ed
to
in t
his
pu
blic
atio
n m
ust
co
nta
ct A
NZ
S,
no
t it
s affi
liate
s. W
he
re t
his
is
an F
X-
rela
ted
or
com
mo
dit
y-re
late
d p
ub
licat
ion
,
it i
s d
istr
ibu
ted
in
th
e U
nit
ed
Sta
tes
by
AN
Z’s
Ne
w Y
ork
Bra
nch
, w
hic
h i
s al
so
loca
ted
at
27
7 P
ark
Ave
nu
e,
31
st F
loo
r, N
ew
Yo
rk,
NY
10
17
2,
US
A (
Tel:
+1
21
2
80
1 9
16
0 F
ax:
+1
21
2 8
01
91
63
). C
om
mo
dit
y-re
late
d p
rod
uct
s ar
e n
ot
insu
red
by
any
U.S
. go
vern
me
nta
l ag
en
cy,
an
d a
re n
ot
gu
aran
tee
d b
y A
NZ
or
any
of
its
affilia
tes.
Tra
nsa
ctin
g i
n t
he
se p
rod
uct
s m
ay i
nvo
lve
su
bst
anti
al r
isks
an
d c
ou
ld
resu
lt i
n a
sig
nifi
can
t lo
ss. Y
ou
sh
ou
ld c
are
fully
co
nsi
de
r w
he
the
r tr
ansa
ctin
g i
n
com
mo
dit
y-re
late
d p
rod
uct
s is
su
itab
le fo
r yo
u in
lig
ht
of y
ou
r fin
anci
al c
on
dit
ion
and
in
vest
me
nt
ob
ject
ive
s. A
NZ
S i
s au
tho
rise
d a
s a
bro
ker-
de
ale
r o
nly
fo
r U
S
Pe
rso
ns
wh
o a
re in
stit
uti
on
s, n
ot
for
US
Pe
rso
ns
wh
o a
re in
div
idu
als.
If y
ou
hav
e
reg
iste
red
to
use
th
is w
eb
site
or
hav
e o
the
rwis
e r
ece
ive
d t
his
pu
blic
atio
n a
nd
are
a U
S P
ers
on
wh
o is
an
ind
ivid
ual
: to
avo
id l
oss
, yo
u s
ho
uld
ce
ase
to
use
th
is
we
bsi
te b
y u
nsu
bsc
rib
ing
or
sho
uld
no
tify
th
e s
en
de
r an
d y
ou
sh
ou
ld n
ot
act
on
the
co
nte
nts
of
this
pu
blic
atio
n in
an
y w
ay.
Au
stralia
an
d N
ew
Ze
ala
nd
Ba
nk
ing
Gro
up
Lim
ited
(AN
Z) A
BN
11 0
05
35
7 5
22
. AFSL 234527. A
NZ’s colour blue is a trade m
ark of AN
Z. K15179 03.15
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