A recently minted but not yet ratified free trade deal between China and Australia should accelerate an already powerful trend of Chinese investment into Australian assets, by cutting red tape and making approvals easier.
Under the FTA, acquisitions of up to A$1.1 billion by private companies will no longer need approval by Australia’s Foreign Investment Review Board FIRB, which advises the Treasurer and the government. Currently, any deal valued over A$252 million must receive FIRB permission.
State-owned enterprises would still need to see their transactions approved but private-sector buyers are increasingly important players in the China-Australia mergers and acquisitions scene, according to Tony Damian, partner...
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