Chinese investors have yen for Aussie farmlandChinese investment in Australia surged 11.7 percent last year to
A$15.4 billion (HK$90 billion), amid booming demand for agricultural assets and infrastructure, according to a report released yesterday.
A record 103 deals were signed with Chinese companies in 2016, with 76 percent of those reached with private firms, KPMG and the University of Sydney said in the report, Demystifying Chinese Investment in Australia.
Australia, with a population of 24 million and a land mass larger than India, relies on foreign investment to spur growth.
While Prime Minister Malcolm Turnbull's government blocked two key purchases by Chinese firms last year - citing national security - the report shows the majority of deals are approved.
"There are signs of a growing maturity by Chinese investors in the Australian market," the report said in its key findings.
"The number of joint ventures is increasing, with more repeat investments by established Chinese companies. This has set a foundation for growth in future investment."
Commercial real estate remained the largest sector, attracting 36 percent of Chinese investment, followed by
infrastructure with a record 28 percent, including the purchases of Asciano and the Port of Melbourne. Agribusiness rose threefold from 2015.
While Australia remained second only to the United States as the biggest recipient of Chinese capital since 2007, the growth in investment was last year dwarfed by the increase of flows into the European Union and Brazil.
Turnbull's government faces growing calls from fringe populist parties to restrict foreign deals, as opinion polls show public unease about Chinese investment in farmland and other key assets.
In 2015, the government tightened scrutiny for selling farmland to Chinese, Japanese and Korean buyers, by requiring purchases of land worth A$15 million and over to be screened for approval.
BLOOMBERG
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