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Speaker 1: With us. Now we've got Shane Solly of Harbor Asset Management, Hay.

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Speaker 2: Shane, Hey, Heather, listen.

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Speaker 1: I'm very well, thank you, Shane. I'm fascinated by what's

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Speaker 1: going on in China. So they're going to open up

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Speaker 1: the stimulus taps a little bit more.

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Speaker 2: Yep. So again we've seen a few policy announcements the

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Speaker 2: last week or so. In the weekend we saw another

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Speaker 2: big announcement from the Chinese Master of Finance, their outlining

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Speaker 2: planing space to issue more debt to boost property markets,

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Speaker 2: recopitalize banks, assist local governments, and so. On Saturday, I

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Speaker 2: talked about the potential to issue special sovereign bonds to

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Speaker 2: recapitalize the big state owned banks, and it would also

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Speaker 2: allow local governments to use remember two point through tree

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Speaker 2: and of local governments special bonds to buy unsold homes.

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Speaker 2: Really important because the local governments have been pretty hamstrung.

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Speaker 2: They've had massive debt, and so this really allows them

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Speaker 2: to repay debt and actually put some stimulus back in

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Speaker 2: the economy pieces that's been missing in the Chinese economy. Now.

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Speaker 1: Capital markets initially seem to be kind of disappointed by this,

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Speaker 1: should they have.

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Speaker 2: Been well, look, it's a bit light on detail and numbers,

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Speaker 2: and this is what we've seen the last week also

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Speaker 2: in terms of these policy announcements. But certainly the Monster

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Speaker 2: of Finance was be patient. We've got some more policy

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Speaker 2: announcements coming. And you got asked a question about the

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Speaker 2: scarlet things. He said, look, I won't say now, but

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Speaker 2: it's going to be big, and that's pretty unusual. They

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Speaker 2: don't normally say stuff like that. There's a bunch of

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Speaker 2: policy events coming up to the National People's Congress later

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Speaker 2: in October, and it just feels like the Chinese regulators

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Speaker 2: are putting more and more and more layers of supporting.

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Speaker 2: It's certainly giving the economy a bit of a boost

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Speaker 2: off the bottom. So there is some upside here. We

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Speaker 2: had to see some more detail.

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Speaker 1: Now what does this mean do you think for the

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Speaker 1: New Zealand economy.

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Speaker 2: Look, we've got a bit of a way to go.

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Speaker 2: We do need to see how this goes in terms

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Speaker 2: of stimulating consumer confidence. That's what it's all about, right,

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Speaker 2: trying to give people confidence and housing markets and that

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Speaker 2: they can open up their own spending. And so if

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Speaker 2: it happens that it would actually be broadly supportive for

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Speaker 2: demand for New Zealand commodities, things like services like travel

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Speaker 2: if it improves confidence, and also would be a bit

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Speaker 2: of a boost to the Australian economy, which again is

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Speaker 2: helpful for a lot of New Zealand businesses the Australian activity.

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Speaker 2: But we've got to let it roll through. We've seen

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Speaker 2: a bit of a bounce, people are a bit more optimistic,

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Speaker 2: but we need to see some more detail.

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Speaker 1: Yeah, fair enough. Now we've just been talking to Nicola

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Speaker 1: Willis about the easing and the foreign investment laws. What

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Speaker 1: do you reckon that means for the capital markets?

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Speaker 2: Well, look, I think the best way putting it is

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Speaker 2: the current policy has restricted the breadth of offshore investment

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Speaker 2: New Zealand, and I think it has certainly pushed New

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Speaker 2: Zealand down the list of the destinations for investors to

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Speaker 2: go globally. So not anything that actually sees that maybe

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Speaker 2: we go back up the list, but I just sort

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Speaker 2: of obviously point to there's been some really good offshore

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Speaker 2: interest in our markets of late. There's obviously big bond holdings,

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Speaker 2: but more and there we had some massive capital raises.

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Speaker 2: Now the used the example of Auk and Eport raised

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Speaker 2: one point four billion dollars. We saw a big ejection

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Speaker 2: from global investors really attracted to attractive newsion infrastructure. So

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Speaker 2: I think there is plenty of appetite out there. They

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Speaker 2: just need to know that they're actually there's a framework

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Speaker 2: that doesn't penalize them. And I think also when I

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Speaker 2: come back, quious over cause are pretty powerful as well.

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Speaker 2: So you know, we have multiple services the capital. Just

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Speaker 2: freeing up that access to international investors will be helpful

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Speaker 2: to improve the pricing we get for our asses.

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Speaker 1: Yeah, brilliant stuff. Hey, Shane, thanks for talking us through that.

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Speaker 1: Enjoy the receive evening that Shane Solly of Harbor Asset Management.

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