Investment

Australia has a sophisticated financial services sector as well as Highly developed financial markets and is ideally positioned as a centre for the Asia-Pacific region. This is demonstrated by deep and liquid financial markets and regional leadership in investment management as well as in areas including infrastructure financing and structured products. Finance and insurance is the fourth largest sector in Australia’s economy, generating 8.1 per cent or A$81 billion of real gross value added in 2007-08.

Within this competitive banking system and the wide range of other financial intermediaries, the major providers of capital include banks (debt), insurance companies (equity and debt) and superannuation funds for pensions (equity and debt).

The Australian Securities Exchange (ASX) has a long history of listing mining companies. Mining dominated the market for most of the last century, however it lost relative importance over the last 15 years as the Australian market became increasingly diversified. Mining and Resources industry growth in 2008 has increased its proportion of total market capitalisation to close to30% of the Australian market in December 2008. About one third of all ASX-listed companies are mining and resource-based. 52 ASX listings, out of 93 IPOs in 2008, have been in the Resource (energy/metals and mining) sector.

Australia protects its investors. The country is ranked third in the world and first in the Asia-Pacific region for adequately protecting shareholders’ rights. Furthermore, the Australian government encourages and supports foreign investment. There is no impost on foreign firms seeking credit or loan facilities and there are no restrictions on capital flows, profit remittances, capital repatriation, transfer of royalties or trade-related payments.