China’s booming economy represents significant opportunities for Australian financial services organisations large and small, according to a recent study completed by Austrade.
According to Austrade’s China Financial Services Project report: “China is unmistakably emerging as a global economic force. However, [its] financial services are universally seen to be a significantly weak link in this developing economy.”
Austrade believes Australia’s strong ties with China, including its geographic location and history of diplomatic neutrality, provides a distinct advantage over other foreign countries in helping China to bring its finance sector up to a world class standard.
Think Global Consulting, an organisation that works with Australian services companies looking to build an Asian presence, recently partnered with Austrade in presenting the report’s findings.
David Thomas, Think Global’s chief executive, said one of the key short-term opportunities for Australian financial services organisations lies in financial services training and education.
“The Chinese have to upgrade their capabilities in banks, fund management groups and life companies fairly quickly, because they don’t have much experience.
“What we have to do is to raise the profile of Australia’s capability É because there are genuinely interesting opportunities in a range of areas,” he said.
In the presentation delivered by David Thomas and Peter Osborne, Austrade country manager for China, they also pointed to opportunities in areas including wealth management, actuarial services and boutique accounting services.
“In the short term, they don’t have the same barriers as those at the big end of town over the longer term.
“Twenty years ago there wasn’t a fin services industry, it’s all happened since then. They have a big problem in terms of upgrading their capability,” Thomas said.
Over the longer term, Australia’s negotiation of a free trade agreement with China could open up the market for greater representation among Australian banks and large financial institutions.
