21 Oct 2014

Chinese tipped to invest more in NZ

7:18 pm on 21 October 2014

More money will flow to New Zealand from China when the world's second largest economy introduces schemes to encourage its citizens to invest abroad, and analyst says.

ANZ Bank's chief economist for Greater China Ligang Liu said the Chinese government was currently discussing schemes to encourage private citizens to invest offshore.

During the past few years, China has pushed its state-owned enterprises to invest overseas but only now is it changing policies to make it easier for private citizens to do the same.

Mr Liu said China's foreign exchange reserves of about $US3.9 trillion were unsustainable, which was why that country was pushing offshore investment.

Trade with China and recent Chinese immigrants would be the source of the new money, he said.

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