CHINA'S MARKET SLUMP 'MAY BE GOOD FOR AUSTRALIA'
Written on the 15 July 2015 by Laura Daquino
DON'T pull out the stops on China - it's still a boom market and needs to stay on your radar, says Holding Redlich Brisbane partner Carl Hinze.
"Chinese households have a lot of savings, which act as a buffer to rapid swings in the equity markets. These swings tend to transfer wealth, rather than create or destroy it.
"While many retail investors will have suffered from the slump, many others will have profited from it.
When doing business in China, Hinze says Australians should first understand the different timeframe they will have to follow and, from there, never lose sight of where their interests lie.
"Australian investors going to China don't generally understand the long lead time to market, complexity of approval and issues that arise from joint-venture agreements. Australian investors have an unrealistic expectation of timeframe to market," says Hinze.