Chinese banks permitted to invest in Australia
Updated
The Australian treasurer, Wayne Swan, has described as a breakthrough the announcement that banking institutions in China now have permission to invest in Australia.
Speaking from the Chinese capital, Beijing, Mr Swan says the deal will create new opportunities for Australia's fund management industry to provide services to Chinese investors.
He says he expects the move to be welcomed by Australia's financial sector.
"Funds can now flow from the Chinese banking system into capital markets in Australia and into funds management," he said.
"We don't know what the total amount of money will be, but I know that it is a measure which has been welcomed by the financial services industry quite strongly at home."
Mr Swan says it is an important facet to Australia's continuing strong economic growth.
"We have a world class financial services industry and this is a very important breakthrough because China is now our largest trading partner."
