Published By : 13 Oct 2015 | Published By : QYRESEARCH
Australia and New Zealand (ANZ) bank is targeting a wide range of business customers in China and looking beyond lowest-risk clients such as large multinationals and top state-owned businesses. The bank plans to gain profit from China’s growth in the longer term. According to Andrew Geczy, the chief of international and institutional banking, the bank has been trying to work with foreign financial firms. As China opened its consumer finance markets for international players, the opportunity seemed right for ANZ bank to explore the market. The bank has published a new report that suggests Australian exports to China would double to US$250 bn by 2030 with the economy shifting from heavy investment to consumer-led growth.
Mr Geczy, who is looking after the bank’s growth in Asia, has stated that the bank’s long-term strategy is focussed on institutional clients. The bank would continue targeting the trade and investment flows between China and Australia. In China, ANZ lends particularly to state-owned firms and large multinationals over short duration. However, over the time, the bank plans to lend long-term loans to a broader range of corporate clients.
According to JP Morgan analyst Scott Manning, a change in long term plans would boost the bank’s business in China. However, ANZ need to properly address any extra risk associated with this strategy. Some investors are concerned that the current slump in China’s economy might affect ANZ. Mr Geczy has stated that the bank would pursue opportunities from the opening up of the country’s financial market. Market analysts are closely observing whether ANZ’s division handled by Mr Geczy would be able to achieve return on equity target of 13%. Mr Geczy, in his report, has stated that strong demand from education, tourism, and food exports sector in China will eventually bring back the economy on growth track.