Non-bank lender Chifley Securities has seen a significant increase in demand for finance from Chinese investors, with 27% of its $500 million dollar loan book now devoted to borrowers from China.
According to Chifley Securities, those loans are being used for financing development for residential and commercial projects, as well as the acquisition of properties for future development or currently under construction.
While more of a quarter of their loan book is directed towards Chinese investors, Chifley Securities’ director Joe Morello is predicting more interest from offshore thanks to the falling Australian dollar as well as the restrictions put in place by the Chinese government that limit the amount of capital it’s citizens can take out of the country.
“The tightening of Chinese Government rules to stem the flow of capital from the country and the tougher lending criteria of the major Australian banks has seen a boost to non-banks’ business volumes,” Morello said.
“Coupled with the depreciation of the Australian dollar and the historic low interest rates, non-banks are expected to post a bumper year in lending and we now have close to $1 billion worth of funding lines,” he said.
