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China transition on track: Elliott

China’s transition toward a consumption-led economy is clearly underway, ANZ CEO Shayne Elliott says, although businesses in the country acknowledge aspects of the shift will be challenging.

 

" The feeling from the companies [in China] was remarkably upbeat."
Andrew Cornell, Managing editor, BlueNotes

Speaking after returning home from an Australian delegation to China alongside a fleet of companies led by Prime Minister Malcolm Turnbull, Elliott said there was a positive feeling amongst Chinese companies as reform progressed.

“The feeling from the companies there was remarkably upbeat,” he told BlueNotes on video. “They acknowledge there’s going to always be some wobbles… but they are growing and investing and talking a lot about transforming their businesses.”

China transition on track: Elliott (Pt1)

Elliott said he was not concerned by policy moves in China, seen by some to support the ‘old economy’, although he admitted the way they were communicated to the market had led to some uncertainty.

“Like any transition… it is government’s role to smooth and share some of the costs of that,” he said.  “I think this is a normal transition outcome.”

“I think the more concerning thing has been about the communication. I think it’s fair that some people have been a little surprised… and as we know in business, people like some sense of certainty.”

China transition on track: Elliott (Pt2)

Elliott said the visit had strengthened his belief in the opportunity for ANZ in China and he remains confident the bank’s presence there is delivering for both customers and shareholders.

“Listening to the success we’ve had there is really remarkable,” he said. “I think our strategy around focussing on what we do incredibly well and better than anyone else, which is intermediating trade and capital flow in the region… reinforces to me that’s the right thing for us to do.”

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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