A key insight from a recent visit to China by ANZ’s Property team was the time frame over which property investments are judged in China. In short, it’s much longer than Australia.
The ability of China-based businesses and individuals to focus on the long-term is perhaps something we could do with more of in Australia. In China it is also coupled with a willingness to take on new opportunities and embrace diversification which helps hedge the risk of the longer term view.
The enthusiasm of Chinese investors for projects outside their traditional domain is likely encouraged by China’s underlying appreciation of diversification. The majority of clients or businesses visited by the ANZ delegation had large diversification plays, either through a combination of horizontal and vertical integration, or investment into other diverse areas.
"The ability of China-based businesses and individuals to focus on the long-term is perhaps something we could do with more of in Australia.”
This partly reflects China’s incredible economic growth over the past 40 years, where plenty of opportunities existed, and many investors were able to find success across many different industries.
This is quite different to the Australian model where firms are more likely to value specialisation and focus their efforts on being the best operator within their market.