China trade deal opens doors to financial services
The China-Australia free trade agreement (FTA) will give fund managers direct access to China and enhance financial services trade between the two nations, the Financial Services Council (FSC) said.
The FSC director of policy Andrew Bragg said the FTA will allow liberalised trade with China by permitting access to foreign managers, and will help Australia export financial services in the "Asian century".
He added the agreements go beyond what China has with other countries.
"Combined with the Renminbi Qualified Institutional Investor (RQFII) scheme, the free trade agreement delivers a new level of access in the Chinese market for Australian fund managers," Bragg said.
The allocation of the RQFII quota will allow Australian domiciled fund managers to buy equities and bonds directly on China's mainland securities exchanges in Shanghai and Shenzhen.
Further, the waiting period for Australian banks to deal in the local Renminbi currency has been slashed from three years to one year.
"Australia is only the fourth country in the Asian region to be granted an RQFII quota. There are only 12 countries with this recognition," Bragg said.
Chinese President Xi Jinping was in Canberra yesterday to sign the FTA with Australia.
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