Sydney in box seat for Chinese investment and jobs growth
5 November 2015
A new report released this week with support from the NSW Government shows how Sydney can drive increased investment and create new jobs by taking advantage of its position as an official offshore renminbi (RMB) centre.
Report highlights opportunities
Renminbi Internationalisation and the Evolution of Offshore RMB Centres: Opportunities for Sydney report reveals new possibilities for Australia as China continues to open to the rest of the world.
The report was funded by Sydney Business Chamber, partnered with the NSW Department of Industry and the Australian National University, with in-kind support from King & Wood Mallesons and the Financial Services Knowledge Hub.
Building Sydney as a RMB hub
The NSW Government played a key role in securing Sydney's status as a key offshore settlement hub for the Chinese currency in 2014, with the new report providing insight on how to build upon the new financial relationship.
The report identified complementarities between the Australian and Chinese economies that will underpin closer financial relations and ensure Sydney is an attractive place to conduct RMB-denominated business.
In addition, NSW's leading finance sector has opportunities to provide fund management and other services to Chinese business, which has a big national savings pool.
According to Sydney Business Chamber, there were still a number of challenges to be faced to capture the opportunities identified in the report.
This included the need for Australia to understand Chinese regulation and policy changes and better brand recognition for Australian providers in the Chinese market.
Sydney also competes with 17 other official RMB hubs around the world.
Sydney Business Chamber Executive Director Patricia Forsythe said the momentum Sydney generated by being designated as an official RMB hub had to be maintained and built on.
"Sydney is the engine room of Australia's economic activity and the hub for the nation's financial services sector with over 65% of Australia's banking and finance activities undertaken in Sydney," Ms Forsythe said