Australia-China Chamber of Commerce and Industry
of New South Wales

POSITION PAPER ON INCENTIVES FOR FOREIGN DIRECT INVESTMENT

With Special Reference to Australia-China Relations

August 2001

CONTENTS:

Executive Summary

Terms and Definitions

Characteristics of World Cities

Role of the Public Sector

Role of the Private Sector

Australia-China Relations

Reference Sources

Executive Summary

Genesis of this Position Paper:

During the past several years, the Chamber received numerous queries from Chinese enterprises about investment opportunities in Australia, and about the procedures required for that investment. Most of these originated from small and medium-sized enterprises (SMEs) and the queries were put through chambers of commerce in China, or other non-government organisations, with which ACCCI maintained contact over a period of time.

In most of these cases we passed the queries along to other enterprises or organisations in Australia that were a position to supply information and advice. In doing so, however, we found it difficult to “follow the thread” and are unable to determine how many of these were successfully completed. Perhaps of greater importance, we are unable to determine why they did not succeed, if that was the result.

We therefore decided to reconsider our procedure and undertook a survey of case study material, as well as some theoretical literature, with a view to discovering how other nations facilitate inward foreign direct investment. The outcome of this survey prompted this Position Paper.

Main Points:

We discovered the following:

Strategies to encourage inward foreign direct investment (FDI) are largely urban based in that the focus is typically on a small number of major cities in the recipient nation. Dispersion to other cities, and to regional centres, is normally considered after the investing enterprises are established in one of these major cities.

The overall plan to encourage of inward FDI is part of a wider strategy for the major cities to become more globalised and presumably to gain a higher ranking as a global city (see section 2 – Characteristics of World Cities).

Despite an urban focus for the facilitation of inward FDI, successful strategies require relatively close co-operation and co-ordination between the central government and local governments, including state or provincial governments (see section 3 – Role of the Public Sector).

Successful strategies also involve substantial participation from non-government organisations (NGOs). Apparently potential investors observe the way the private sector assists in the implementation of the strategy and are wary of governmental dominance (see section 4 – Role of the Private Sector).

The last of these points seemed to justify greater participation on the part of the Chamber. We also believe that an NGO identified as having a specific interest in China is likely to be more effective in assisting the implementation of a strategy with potential investors in China, as compared to non-China-specific NGOs (see section 5 – Australia-China Relations).

1. Terms and Definitions

FDI:

Throughout this position paper, we use the term direct investment to convey the following:

Sufficient equity ownership in Australian-registered companies to be able to exert a major influence on the way those companies are managed.

It does not include share purchases that are motivated by the more passive desire to obtain income from dividends, or to realise capital gains, with little or no direct input into the management of the respective companies (generally referred to as portfolio investment).

It does not include equity ownership of a financial institution in a company other than another financial institution.

Many merchant banks and investment funds are acquiring sufficiently large portions of the shares of specific companies to allow the banks or funds to appoint directors to those specific companies. Although this is normally classified as direct investment, in these cases the desire to have influence within the boards of directors is to protect the interests of the bank’s depositors or the fund’s shareholders.

Participation among merchant banks and investment funds, in the manner described, frequently results in important contributions to corporate governance, but the incentives to obtain this type of direct investment are different from those associated with a company that is not a financial institution. The desire for more active managerial influence may of course be the same for a financial institution to acquire a major part of the equity in another financial institution.

Foreign direct investment is of course direct investment by a company that is not registered in Australia. In official statistics, this is generally referred to as “private direct foreign investment”, but foreign direct investment (or FDI) has been much more widely used.

East Asian region:

The East Asian region refers to the nations normally included in the eastern portion of the Asian continent, as well as Australia and New Zealand. This avoids confusion arising from specific reference to continents or to ethnic groups.

Globalisation:

Globalisation refers to a globally oriented trading system. A more specific definition is:

The dispersion of production and service activities across national boundaries and the cross-border linkages among economic enterprises for the purpose of making that dispersion efficient and effective.

Infrastructure:

Infrastructure is defined as the substructure or underlying foundation of the economic, social and political systems. It originally referred to physical installations such as roads, schools, courthouses, etc., but usage now includes some of the intangible elements in the institutional arrangements that create and maintain the physical installations.

Producer services:

Producer services are supplied to other businesses, rather than directly to consumers. In some cases, such as water and electricity, both businesses and consumers are supplied with essentially the same thing. The principal difference is that producer services are inputs for an additional economic activity, and the availability of the services may form an important consideration as to where the activity is located.

SMEs:

Small and medium-sized enterprises (SMEs) are obviously not large enterprises, but it is difficult to state precisely when an SME ceases to be an SME and becomes “large”. In our context, a large enterprise is generally able to remain competitive using its own resources or the resources it can easily obtain externally.

Most, if not all, companies listed in Asiaweek’s Top 1,000 Companies would be considered “large”. Refer to Annex A for a list of China’s companies in this list and Annex B for Australian and New Zealand companies in the list.

Sunk costs:

Sunk costs refer specifically to investment outlays that cannot be recovered when the investment environment is changed as a result of unexpected circumstances. This is of course part of the investor’s risk and most enterprises make allowances for it either by taking out insurance cover or in budgeting for contingencies. The main relevance of this to the discussion that follows is that abrupt changes or reversals in government policy can add substantially to these risks and to the associated level of sunk costs.

2. Characteristics of World Cities

Three “world cities”:

New York, London and Tokyo are the only cities that are generally classified as “world cities”. They achieved this classification mainly as a result of a large urbanised region with a dense pattern of interaction that involves finance, communications, international transport, virtually all aspects of the global corporate sector, the publishing industry (in traditional and contemporary forms), fashion and mass culture.

Opinion differs in relation to regional aspirants such as Hong Kong, Shanghai, Singapore and Sydney in the East Asian region. Fukuoka, Osaka and Taipei have also been mentioned.

Historically, the three world cities, and some of the aspirants, enjoyed a relatively broad industrial base, within their surrounding region, and were major transport hubs. In the past several decades, however, emphasis has shifted to a comprehensive supply of locally based producer services. The traditional services (such as finance, accounting and insurance) remain important, while communications, research and education have acquired increased significance.

Competitive pricing of these services is a critical element in attracting new investment and it appears that a full range of such services is needed in order to maintain the dynamic quality that encourages competition. Additionally, timing has become more important in the delivery of inputs, so gaps in local supplies of services add to production costs through delays.

Not surprisingly, the importance of a comprehensive supply of producer services is one of the major factors explaining the continuing agglomeration into high-density urban areas and therefore gives an advantage to larger cities.

Consumer services, particularly medical, entertainment and generalised retail services, are also important in attracting (and retaining) personnel with the skills required to supply the full range of producer services. Comprehensiveness in the supply of these services is important in achieving the desired price/quality relationships.

Second and third tier cities:

The advantages of agglomeration (which are basically economies of scale) suggest that second and third tier cities have a competitive disadvantage in reaching the status of a world city. This is generally confirmed with modelling experiments.

The simplest form of modelling consists of a number of agglomeration forces and a number of dispersion forces. The former is made up of the factors that tend to create an advantage through agglomeration. Dispersion forces consist mainly of the capacity of labour and capital to move to new locations, but may also include de-concentration influences arising from aversions to crowded conditions.

The net effect of these is balanced on selected parameters to show whether changes in the parameters will lead to a stable return to equilibrium or whether it will result in instabilities.

For example, if extremely high transport costs are inserted into the model, then each city will produce according to its own needs. Trade and specialisation will occur only between the city and its immediate hinterland. This result tends to be very stable and will not be affected by moderate changes in the other influences.

When the transport costs are lowered below a critical level, the agglomeration forces begin to interact sufficiently to create more extended patterns of specialisation and trade. With near-zero transport costs, that specific factor has little or no influence on the agglomeration process.

A typical result from this type of model is characterised by small initial differences determining which among several possible “hosts for agglomeration” will become a centre for activity. When that occurs, there is a “locked in” effect that prevents additional circumstances from removing it as a centre of activity.

Optimum levels of concentration:

A different type of model was presented recently by Vernon Henderson (see Reference Sources). It is based upon the view that if urban concentration is an issue, then it should affect economic growth rates in a “robust and consistent” fashion.

More precisely, in any economy there are initial gains in economic growth rates from increasing urban concentration from low levels, but these gains peak and further increases in concentration bring loses. This implies that a “best” degree of urban concentration exists, so that increases beyond that point will produce negative effects.

The results of the study indicated that gains from increased urban concentration are substantial up to a per capita income of about US$5,000. After that income level is reached, further concentration may be associated with losses in growth by as much as 1.5 per cent per annum.

Importance of technology:

Technological advances tend to modify the negative effects of further concentration and increase the level of per capita income at which the negative effects become dominant. This is relevant to both the world cities and to the major aspiring cities. The capacity to apply recent technological advances will apparently determine the extent to which the leading cities are able to retain their current positions, and it is also likely to determine the speed at which an aspiring city rises to a higher ranking.

To summarise the relevant theoretical and empirical literature relating to urban concentration, the benefits from agglomeration appear to rise sharply as a relatively small city begins to expand. This is followed by a decline in the rate at which the benefits of agglomeration are realised and the benefits are likely to become negative unless efforts are made to minimise the adverse effects of further concentration.

Relevance of globalisation:

This process can be made clearer by relating it to outsourcing activities that have become important elements in the globalisation of production. Outsourcing and offshore production are motivated by high and (probably) increasing costs in the home cities of the outgoing enterprises.

The first type of enterprise to shift production to a lower-cost nation is one that has a standardised product and a standardised production process. For these enterprises there is little need for a comprehensive range of producer services that existed in the home city but are probably missing at the incompletely agglomerated destination city.

The outsourcing activities nevertheless give rise to agglomeration forces and this attracts other enterprises either on a citywide basis or in the form of industry clusters. City planners and municipal authorities typically seek to increase the speed of agglomeration in order to realise the benefits associated with faster rates of economic growth.

As these destination cities develop and reach their own optimum degree of concentration, they become exposed to the dispersion forces that previously motivated the outsourcing from the original cities. The globalisation process is likely to spread this urban growth cycle among a larger number of cities, and it is also likely to contract the time span between the beginning of agglomeration and the beginning ob de-concentration.

Relevance to FDI:

FDI is obviously a fundamental part of the globalisation process and is used as an indication of a city’s success in achieving a balance between the agglomeration forces and the dispersion forces. Perhaps of greater importance, FDI contributes to the balance by giving access to new technological advances that are of critical importance in avoiding the negative effects of urban concentration.

Mainly for this reason, it is difficult to separate strategies for increased FDI from strategies for urban development.

3. Role of the Public Sector

Importance of historical developments:

Considerable attention has been given to the case study analyses of the historical developments in the evolution of cities in the East Asian region. The agglomeration forces described above reinforce the view that historical developments are important elements in urban planning and design. For example, the “locked in” effect, which was mentioned above, is another way of stating that the form and functions of a city that evolved over a relatively long period of time cannot be easily undone or reversed.

On a more practical level, however, the position of a particular city along the agglomeration path is relevant to a number of planning considerations. Specifically, for a relatively low-income city, the available evidence suggests that urban planners should allow for extensive and rapid agglomeration.

Technological refinements and innovative ways of achieving the agglomeration will produce relatively little benefit at the start of the process. The most important objective, in the initial period, should be to achieve broadly based agglomeration and to quickly reach the “locked in” stage.

With this, however, the changes that are likely to occur later should not be ignored. Technological refinements and innovative ways of achieving further agglomeration will yield substantial benefits when the initial agglomeration forces begin to weaken.

The role of the public sector is principally in monitoring these changes and in initiating a procedure to achieve continuing benefits, and this eventually means avoiding the adverse effects of further concentration.

Identification of weaknesses:

Public sector participation should focus more on the identification of weaknesses (or gaps in the service supplies) than in the identification of strengths. This is generally difficult if the public sector is politicised since relatively few public officials are willing to highlight weaknesses, and some are reluctant to recognise that weaknesses exist.

This may account for the apparent desire of investors to rely increasingly on private sector participants. It may also be relevant to the difficulties associated with co-operation and co-ordination among various levels of government.

Bidding contests:

Complications arise from the competitive disadvantage of smaller cities, vis à vis larger ones, and the realisation that investment incentives are useful in overcoming the disadvantage. These incentives were initially viewed as equalisation measures that compensated the investing enterprise for its relocation costs, and for the risks associated with the offshore activity.

The demonstrated success of such investment incentives by Singapore and other East Asian nations stimulated the adoption of similar policies by other countries. This has occasionally resulted in bidding contests for specific types of enterprises.

Although the targeted enterprises benefit substantially from this bidding activity, the higher cost of acquiring the FDI at least partly erodes the benefits. It may also be counterproductive in the longer term since it seems to have created a larger group of “footloose” enterprises that shift location easily in response to better offers.

Investment assistance:

Investment assistance from the public sector may have short-term benefits in “filling the gaps”, but they generally succeed only when further assistance becomes unnecessary. All investment subsidy schemes should be associated with a program to achieve this objective. Inter-governmental co-operation (and perhaps also intra-governmental co-operation) is almost always an important element in that achievement.

A variety of investment-assistance schemes have been applied in the past, nearly all of which required modification in response to changes in globalisation patterns and the development of the nation’s industrial structure. For example, export processing zones that feature bonded areas for the importation of duty free components ceased to be an attraction when tariffs on the relevant items were lowered on a multilateral basis.

Similarly, the planning concept of industrial parks is being extended to a “constellation plan” of sub-centres. The original notion of industrial parks focused on a concentration of processing factories in a specific location for the purpose of minimising the time/distance factor in the interactions among enterprises in those industries. The newer version involves sub-centres outside the central business district that have specialised functions but also have a wider range of services in each centre.

For example, the Urban Redevelopment Authority of Singapore is targeting Woodlands, near Changi International Airport, to become a site for corporate headquarters with an information technology park. Jurong East, which has been manufacturing centre for some time, is to have a business park with a variety of commercial establishments.

Available literature does not yet offer specific guidelines for land use patterns that are effective in attracting foreign investment. Apparently the legacies of the past have produced too many differences to allow optimum patterns to be identified. Nevertheless, several relevant aspects of urban planning and development can be drawn from recent case studies:

The public sector has an important role in formulating and presenting development plans that include:

infrastructure development that minimises costs of production for the private sector;

flexibility in development planning to allow more continuous adjustment in response to a rapidly changing business and commercial environment;

widespread consultation with the private sector to invite constructive comments; and

sufficient notice of changes in plans and policies to allow enterprise to minimise the level of sunk costs.

We suggest that investment incentives without these elements of development planning are not likely to be successful.

4. Role of the Private Sector

Nor surprisingly, domestic enterprises are reluctant to support and contribute to investment incentives that are specifically designed to assist their foreign competitors. Rather, they are likely to insist that any incentives offered to foreign enterprises should also be offered to domestic enterprises, particularly if public funds are to be used to create the incentives.

The workforce will of course welcome any employment-creating incentives. There may be a preference for foreign-owned enterprises if a substantial portion of the workforce perceives that the development of skills through in-house training is more effectively delivered by those enterprises. This is a form of technological transfer which adds substantially to the benefits of FDI for developing countries. Those benefits decline as the “technological gap” shrinks with the industrialisation process.

Infrastructure development will improve the competitive position of domestic enterprises and will also act as an incentive for FDI. The benefits are therefore more widely spread. Perhaps of greater importance, infrastructure development is associated with the self-sustaining elements of agglomeration and dispersion outlined in Section 2. When the process is successfully initiated, the balancing factors emerge with little or no added incentives.

A major role of the private sector in this process is that of informing the public sector of specific infrastructure improvements that are likely to reduce, in an efficient and effective way, the cost of doing business in specific locations. The private sector can also contribute by responding quickly to public sector proposals to change development plans or policies.

An optimum or ideal form of public/private co-operation is not easily defined. Differences in political and social systems are likely to limit the application of any such “optimum”. Current thought nevertheless places increased emphasis on institutional development in order to facilitate the co-operative process. This involves evolutionary changes in the sets of formal and informal rules that govern the actions of individuals and organisations and the way they interact.

As the World Bank noted in its World Development 1999/2000, “much remains to be learned about the determinants of institutional change. Institutions change slowly but continuously, either in response to shifts in outside circumstances or as a result of group conflict and bargaining.”

It appears that forces acting to retard or restrict institutional changes will also retard or restrict the achievement of the outcomes upon which the respective institutions are focused. Both the public sector and the private sector have a role in minimising these “restrictive forces”.

To summarise: We suggested that incentives for foreign direct investment are not likely to be successful unless they are linked to urban development in the recipient nation, and urban development requires that the respective cities become simultaneously more competitive and more liveable. Achieving a balance between these objectives is not easy, but it may be impossible if the objectives are treated separately rather than as a joint objective.

The balance requires public sector and private sector co-operation, and that in turn requires a satisfactory evolutionary change in institutions, as defined above.

5. Australia-China Relations

Institutional change is exceptionally important to China in its emerging role as a major trading nation. For more than 2,000 years China’s hierarchical system limited the formal and informal rules that governed the actions of individuals and organisations, and the way they interacted, to minimum change. The objective of each successive generation was to perfect that which was initiated by previous generations, and not to change it.

Change did of course occur in the second half of the 19th century and during most of the 20th century, but the changes were largely induced by outside influences. Change did not occur in a systematic way and it adversely affected the traditional stability associated with social order in China.

Institutional change in China during the second half of the 20th century was far greater than in any previous period. Even those changes, however, appeared to be haphazard and chaotic, compared to Western institutional change. In many cases, sub-sets of rules were altered with no apparent view as to what the final result could or should be.

When central planning was officially abandoned in December 1979, a substantial amount of government authority was decentralised. The overall strategy and the setting of priorities nevertheless remain “top-down”. This has not changed significantly since, perhaps, the Zhou Dynasty (1027 to 221 BC).

We are suggesting in a separate document that economic co-operation between Australia and China must start at the central government level in order to mobilise the resources in China that are necessary to implement the necessary policies for wider and more systematic institutional change.

The Chamber also suggests that non-government organisations in both Australia and China are likely to be critical elements in this process. Co-operation between representative organisations will enable the non-government sector to acquire the skills necessary to carry out the process of change through to the enterprise level and to the precinct level in urban areas.

The overall scale of China is vastly larger than Australia’s in terms of population. At the enterprise level, however, the pattern is reversed. Annex A lists the 30 companies in China that are included in Asiaweek’s Top 1,000 companies in Asia. Annex B shows 76 Australian and New Zealand companies in the same Asiaweek listing. Only the top four Chinese companies are ranked higher than the highest four Australian and New Zealand companies.

For this and other reasons the Chamber believes there is considerable scope for economic co-operation at the non-government organisational level, and this will continue at least until such time as China’s companies increase substantially in number and ranking among the top 1,000companies in Asia.

We also think there is considerable scope for two-way direct investment between Australia and China. This is likely to be firmly linked to economic co-operation and that, in itself, will be a far more effective incentive for FDI than any other proposed means to attract it.

Reference Sources:

Crafts, N. “Globalisation and Growth in the Twentieth Century, IMF Working Paper No. 00/44, March 2000. Available at http://www.imf.org.

Gilpin, R, The Challenge of Global Capitalism: The World Economy in the 21st Century, Princeton University Press, 2000.

Graham, E. M., and Wada, E, “Foreign Direct Investment In China: Effects on Growth and Economic Performance”, to appear in Peter Drysdale, ed., Achieving High Growth: Experience of Transitional Economies in East Asia, forthcoming 2001.

Moran, T. H., Foreign Direct Investment and Development, Institute for International Economics, 1998.

Tanzi, V., “Globalisation and the Future of Social Protection, IMF Working Paper No. 00/12, January 2000. Available at http://www.imf.org.

World Bank, “Entering the 21st Century”, World Development Report 1999/2000.

World Bank, Cities in Transition: A Strategic View of Urban and Local Government Issues, 2000.

World Bank, Urban Development Working Papers (some undated):

Deichmann, U. and Henderson, V., “Urban and Regional Dynamics in Poland”.

Henderson, V., “How Urban Concentration Affects Economic Growth”.

Henderson, V. and Shalizi, Z., “Geography and Development”.

Ingram, G. K., “Patterns of Metropolitan Development: What Have We Learned?”

Ravallion, M., “On the Urbanisation of Poverty”.

Yusuf, S. and Wu. W., “Shanghai Rising in a Globalising World”, June 2001.

Urban Development Working Papers are available at http://www.worldbank.org. Select “topics”, then “urban development”, “publications”, and finally “working papers”.

Return to the top of this page.

ANNEX A

China’s Companies Among Asiaweek’s Top 1000 Companies

RANK 1999	RANK 1998	COMPANY	MAIN BUSINESS
19	40	CHINA NATIONAL PETRO. CORP.	Petroleum
46	49	JIANGSU SUP. & MKTG. CO-OP.	Cooperative
49	45	SINOCHEM	Chemicals trading
63	69	COFCO	Food trading
107	128	SHANGHAI AUTOMOTIVE	Cars
146	192	EAST CHINA ELECTRIC POWER	Power generation
165	213	DAQING OIL MGT. BUR.	Oil production
198	272	CHINA STATE CONST. ENG.	Construction
219	—	SHOUGANG CORP.	Steel
249	—	CENTRAL CHINA POWER	Power generation
250	451	CHINA FAW GROUP	Cars
288	339	CITIC	Investment
298	375	BAOSHAN IRON & STEEL	Steel
390	443	CHINA HUANENG GROUP	Power generation
326	667	CHINA TELECOM (H.K.)	Cellular phone services
328	404	SHANGHAI VOLKSWAGEN	Cars
451	758	HAIER GROUP	Household products
519	733	FUSHUN PETROCHEMICAL	Chemicals
599	708	QILU PETROCHEMICAL	Chemicals
632	607	CHINA NATIONAL AGRI.	Agricultural products
726	655	BEIJING YANSHAN PETROCHEM.	Chemicals
754	806	CHINA SOUTHERN AIRLINES	Air transport
759	886	SINOPEC DAQING PETROCHEM.	Oil refining
768	657	SICHUAN CHANGHONG ELECT.	Television
785	738	CHINA NATIONAL OFFSHORE OIL	Oil
789	899	CHINA HARBOUR ENGINEERING	Civil engineering
790	759	DONG FENG MOTOR CORP.	Cars
816	854	SHANGHAI PETROCHEMICAL	Chemicals
932	—	SINOPEC YANGZI PETROCHEMICAL	Oil refining
951	—	JILIN CHEMICAL	Chemicals

From Asiaweek (http://www.pathfinder.com/asiaweek)

Return to the top of this page.

ANNEX B

Australian and New Zealand Companies Among Asiaweek’s Top 1000 Companies

RANK 1999	RANK 1998	COMPANY	MAIN BUSINESS
51	65	NEWS CORP.	Publishing, broadcasting
58	64	COLES MYER	Retail
67	75	WOOLWORTHS	Retailing
76	81	TELSTRA	Telecommunications
102	119	RIO TINTO	Mining
129	145	TATTERSALLS SWEEP	Gaming
183	183	QANTAS	Air transport
201	210	MITSUI & CO. (AUSTRALIA)	Commodity trading
233	220	CSR	Building materials, sugar
247	244	FLETCHER CHALLENGE (NZ)	Paper, building materials
254	263	PACIFIC DUNLOP	Trading, batteries
262	226	NEW ZEALAND DAIRY BOARD (NZ)	Dairy products
271	266	AMCOR	Packaging
279	257	MOBIL OIL AUSTRALIA	Oil products
320	331	BORAL	Building materials
330	260	SHELL AUSTRALIA	Oil, chemicals, metals
350	408	TOYOTA MOTOR CORP. AUST.	Car dealership
361	429	ORICA	Chemicals
383	336	COCA-COLA AMATIL	Soft drinks
387	469	FUTURIS	Farm servs., bldg. prods.
396	384	FRANKLINS	Supermarkets
404	463	LEND LEASE	Property, finance
411	410	TAB LTD.	Gaming
412	425	PIONEER INTERNATIONAL	Building materials, oil
413	326	AWB	Food trading
424	394	FOODLAND ASSOCIATED	Food trading
458	325	DAVIDS	Food & drink distribution
464	387	BP AUSTRALIA	Oil refining
471	455	ANSETT HOLDINGS	Air transport
479	485	AUSTRALIA POST	Postal services
487	528	GOODMAN FIELDER	Food
500	570	M.I.M. HOLDINGS	Copper, lead, zinc
501	533	LEIGHTON HOLDINGS	Construction
518	509	FORD MOTOR CO. OF AUST.	Cars
526	333	FOSTER’S BREWING	Beer
527	589	WESFARMERS	Chemicals, retailing
531	560	BRAMBLES INDUSTRIES	Transport services
543	250	INVENSYS AUSTRALIA	Industrial engineering
549	670	BRIT. AMER. TOBACCO AUST.	Cigarettes
558	678	ROTHMANS HOLDINGS	Cigarettes
563	602	SOUTHCORP HOLDINGS	Food, drinks, packaging
574	536	TELECOM NEW ZEALAND (NZ)	Telecommunications
592	603	AIR NEW ZEALAND (NZ)	Air transport
607	630	MAYNE NICKLESS	Transport, security
608	757	IBM AUSTRALIA	Computers
625	498	CALTEX AUSTRALIA	Oil refining, distribution
653	679	HOWARD SMITH	Transport
674	717	EMAIL	Appliances, furniture
686	596	ITOCHU AUSTRALIA	General trading
694	562	CABLE & WIRELESS OPTUS	Telecommunications
698	620	MITSUBISHI MOTORS AUST.	Car assembly, sales
713	611	CARTER HOLT HARVEY (NZ)	Wood, paper
722	788	COMALCO	Metals, mining
723	—	PHILIP MORRIS	Cigarettes, food, drink
756	682	MARUBENI AUSTRALIA	General trading
780	709	NORTH LTD.	Mining, paper
803	734	NEW ZEALAND DAIRY GROUP (NZ)	Dairy products
837	897	F.H. FAULDING	Pharmaceuticals
849	845	SUMITOMO AUSTRALIA	General trading
854	889	NESTLE AUSTRALIA	Food
865	859	QUEENSLAND RAIL	Rail transport
873	826	QUEENSLAND SUGAR CORP.	Sugar
886	830	PROGRESSIVE ENTERPRISES (NZ)	Food
888	867	ENERGY AUSTRALIA	Power generation
890	—	FLIGHT CENTRE	Travel agent
897	970	CONAGRA HOLDINGS (AUST.)	Meat
910	—	W.D. & H.O. WILLS	Alcohol, tobacco
912	—	PRATT HOLDINGS	Wood, paper
925	—	TNT	Cargo transport
935	982	P & O AUSTRALIA	Transport, storage
940	—	SEVEN NETWORK	Broadcasting
941	—	TRANSFIELD HOLDINGS	Construction
946	—	SMORGON STEEL	Metal products
957	649	BRIERLEY INVESTMENTS (NZ)	Hotels, investment
959	—	AUSTRALIAN GAS LIGHT	Gas
994	—	GOLDEN WEST REFINING CORP.	Precious metals
995	922	PUBLISHING & BROADCASTING	Television, magazines

From Asiaweek (http://www.pathfinder.com/asiaweek)

Return to the top of this page.