Managing Director and Head of Commercial Banking
HSBC Bank Australia
With over 22,000 foreign companies registered in Australiaii , it’s no secret that Australia is an attractive destination for corporates looking to invest in a new market.
Having experienced close to 26 consecutive years without a recession – nearly the longest period of expansion of any economy across the developed world – Australian GDP has increased by 23 per cent since 2008, compared to growth of three per cent across Europe.
Our nation benefits from stable and political and legal systems, a network of international free trade agreements (FTAs) and unique global positioning – regarded by many as a gateway to Asia. As a consequence, Australia has created an ease of doing business for organizations wishing to expand throughout the Asia-Pacific region.
With a robust economy supported by population growth, a healthy pipeline of domestic infrastructure projects, and increasing demand for Australia’s services exports – including education, tourism and agriculture – particularly from China, Australia’s key trading partner, the future looks bright for German companies doing business down under.
HSBC Australia is regarded as the fifth largest bank for corporates in the Australian market and is positioned to expand over the coming years.
HSBC Australia’s strong product offering and coverage across Australia means we have the competitive edge for international corporates looking for a bank to suit their requirements. Recently, we maintained our number one market position for International Banking – increasing our lead over our nearest rival by 5 per centiii.
The size and scale of Australia is often taken for granted by companies expanding into this market. To put things in perspective, Perth in Western Australia is around a five hour flight from Sydney and over four hours from Melbourne. We’re the only international bank with relationship managers on the ground in all major State capitals.
Lastly, international trade is a part of HSBC’s DNA. The Bank was founded over 150 years ago to finance trade between Europe and Asia, and the Asia-Pacific region remains central to our strategy. Nowhere is this truer than in Australia, where the country’s growth story has been linked to its close ties to Asian economies – 70% of Australian exports are destined for Asia, in particular China. Given this close relationship, Australia has earned itself a reputation as a landing pad for companies looking to deepen trade links with Asian markets, or to invest in a developed market with significant exposure to the Asian growth story.
Australia remained one of the world’s top destinations for foreign direct investment (FDI) stock in 2015, with a 2.2 per cent share of the global share of FDIiv ranking just outside of the top ten behind Canada and the Netherlandsv. Germany accounted for 2.3% of FDI into Australia in 2015, while the USA, Japan and UK collectively contributed almost 46 per cent of investment into Australia during the same periodvi.
As the world’s fourth largest economyvii (in US dollar terms), Germany has an opportunity to tap into Australia’s diversified economy and invest in a successful provider of products and services that are in high demand.
Coming from a variety of different sectors and industries, our German-headquartered clients are familiar with our capabilities and coverage across the nation. Supported by our corridor lead for Continental Europe, John Rasiah, we look forward to supporting more German businesses in this dynamic market and driving your success story in Australia.
In Australia, the HSBC Group offers an extensive range of financial services through a network of 36 branches and offices. These services include retail, commercial and private banking, financial planning, trade finance, treasury and financial markets, payments and cash management and securities custody. HSBC started operations in Australia in 1965, is the leading international bank in the country and is regarded as the “fifth major bank for corporatesi ” – behind Australia’s four major domestic banks.
i East and Partners – Transaction Banking Survey 2017
ii Why Australia – Benchmark Report 2017, Austrade, p. 47
iii East and Partners – Transaction Banking Survey 2017
iv Why Australia – Benchmark Report 2017, Austrade, p. 44
v Why Australia – Benchmark Report 2017, Austrade, p. 43
vi Why Australia – Benchmark Report 2017, Austrade, p. 44
vii Why Australia – Benchmark Report 2017, Austrade, p. 4