Australia’s $20 billion question
Published on 18 May 2018
“There is approximately $20 billion of market capitalisation on the ASX with exposure to the demands of the Chinese consumer. John Lake from Paradice Investment Management has recently returned from a tour of China where he saw first-hand some of the changes and trends that are taking place. One observation is that Chinese consumers are becoming increasingly sophisticated in their tastes.
Alibaba’s venture into ‘new retail’ via the Hema supermarkets has been so popular that property developers believe it is influencing apartment prices in surrounding areas. Lake says the market is there for Australian companies to reach, and cites A2 Milk as one example of a company that is having to learn to adapt to the challenges of seizing the opportunity. In this short video he highlights another emerging opportunity and explains how he deals with regulatory risk when investing companies exposed to China.