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May 31 2016 at 5:44 PM – Financial Review
Next round of Chinese investments in
Australia - a bank
The Oversea-Chinese Banking Corp. (OCBC) is one of south east Asia's largest
banks Bloomberg
by Su-Lin Tan
In what is the next stage of Chinese investments in Australia, a group of high net
worth investors and entrepreneurs have applied to the Australian Prudential
Regulation Authority to start the first Chinese bank incorporated in Australia.
Aoyin has applied for deposit-taking institution authorisation to start an Australianincorporated bank serving Chinese investors and, later, the wider Australian public.
The group behind one of the earliest significant investor visa (SIV) funds, Australia
Capital Investment Group (ACapital) founded the bank, which is being advised
by professional services firm PwC and lawyers Baker & McKenzie.
The organisation has no affiliations with banks from mainland China.
ACapital's founder, Owen Chen, runs Aoyin with general manager Howard Ting
and Andrew Maundrell, an executive with Sydney-based professional services and
SIV firm Business Intellect Group.
"In this new era, there is a growing pool of sophisticated Chinese investors with an
affinity to Australia yet there is no Australia incorporated bank that has been built and
operated by this economically significant group," the company said.
"Aoyin intends to provide a solution to offer a full range of financial products in
support of the Chinese migrant community in Australia."
Broader customer base
But the organisation does not limit its services to members of the community,
offering its current products – commercial loans and convertible notes – to any
customer.
Its aim is to operate like the big four banks, complete with international services.
"We want to offer a point of difference with our products and services," Mr Ting said.
"APRA has been supportive of the engagement to date. While our focus is initially on
Australian-resident, Chinese-background customers, we will look to engage with a
broader customer base ... The end game is to serve all of Australia and also have a
global footprint."
The firm has already raised $150 million from about 20 private entrepreneurs, new
Chinese migrants and Chinese investors.
While APRA is considering its application, Aoyin will operate as a private investment
firm investing its newly raised funds in high-return projects in sectors such as real
estate, agribusiness, resources, technology and healthcare.
The company already has investments in residential projects across Sydney,
Melbourne and Brisbane in the $20 million to $100 million bracket, which do not get
much of a look-in from major banks.
Aoyin welcomes new backers but says it will only take new funds if there are projects
worth investing in.
The initiative will fill a gap in the market, those close to the bank say.
"Aoyin will be able to understand Chinese clients better and clients can avoid
the scrutiny of Chinese state-owned banks," a source said.
This is not the first time such an initiative has been undertaken.
In the United States, the East West Bank operates out of California. A similar
Singaporean example is the Oversea-Chinese Banking Corporation (OCBC).