Chinese investment in NZ relatively low, but growing

Chinese investment in New Zealand is less than many people think despite the publicity around major Chinese investments, a survey by accounting firm KPMG New Zealand showed Monday.

KPMG analyzed trends in foreign direct investment through a review of the government's Overseas Investment Office (OIO) approvals from July 2010 to December 2012.

The study found that Asia accounted for only 16 percent of gross foreign direct investment, while Australia remains New Zealand's biggest single source of capital, at 46 percent.

North America, Europe and Australia combined accounted for approximately 70 percent of investment.

"There has been a lot of press about Chinese investment into the country, particularly around large agri-business deals," KPMG partner, corporate finance, Justin Ensor said in a statement.

"However, Asia and China are not as dominant as many people may think."

Among Asian countries, Japan accounted for 53 percent of investment, while the Chinese mainland and Hong Kong accounted for 33 percent.

While China's level of foreign investment appeared relatively low in recent times, recent announcements of proposed investments in the dairy sector by Yashilli and Yili indicated this might be about to change.

Overall, New Zealand remained an attractive environment for offshore investors, he said.

"New Zealand offers lower regulatory hurdles than in other territories, coupled with our stable political and legal environment. The recent uncertainty in Europe has no doubt made us an even more attractive proposition."