Okay foreign investment or subtle Chinese takover?

[rustyheela]

not a day go by, that some sort of announcement on some equity website, news wire reports that the chinese have bought equity or placements or supplied funding of resource, infrastructure etc. subtle takeovers? grab for cheap resources? should we be concerned? 8/10 companies in OZ would have this on our registers? Lucky country? sold out cheap? who controls it in 10 years? Future is?

 

[boofhead]

I feel uncomfortable about it all myself. Being Chinese for me isn't the issue (although having the Chinese govt being involved maybe a bit off-putting) but foreign ownership. An official involved with Chinese government investment arms made mention that they are looking for strong investments than the large amount of bonds they have. Now we have it - strategic investments in companies that benefit China.

The Australian companies seemed to take on too much debt for the sake of size. Maybe at one of the least smart times - during a long boom.

Boom and busts have been happening for a while. They should have looked longer term and build financial strength and wait a bit.

The Chinese played it smart - build up reserves and string during a bust when companies and even governments need help.