'NZ a good investment' for Chinese investors

A Chinese investor watches the stock index in a small trade floor on 5 January 2004 in Shanghai, China. Photo / Kevin Lee, Bloomberg News

A powerful Chinese politician says New Zealand is seen as attractive to foreign investors and it's a reputation we should value.

She sounded a warning, however, that cash might stay away if "mixed messages" were sent.

China's foreign affairs committee chairwoman Madam Fu Ying was in Auckland this week.

Speaking to TV3's The Nation, she spoke about how rule changes in China meant more investors there has cash to invest overseas.

"Chinese companies and Chinese investors are interested in investing abroad."

This included New Zealand.

"New Zealand has been regarded as a very good place for investment. There's a consistent policy and there's always, I think, political messages from New Zealand about welcoming Chinese investment."

When asked about the Labour Party's recent comments about people with Chinese sounding surnames snapping up Auckland properties, Ms Fu Ying said she hoped Chinese weren't becoming a political target.

She said Chinese investors were buying property in London and the United States and where-ever they were, they would abide by local rules.

The recent decision by the government to veto a bid by Chinese investors to buy Lochinver Station, despite the sale being approved by the Overseas Investment Office, would have been "a big disappointment to the investor".

Ms Fu Ying pointed out Chinese interests had bought a large pork-producing company in the United States for US$7 billion.

"And there was a debate in the parliament too. We talked with them, we explained to them what kind of company that was. But the investment was accepted. They are doing very well now in the United States, so I don't see why Chinese investors cannot be successful here," she said.

"But I can't comment on your domestic politics. But I hope the message is clear and consistent, because if it's a mixed message, people will wonder is it a good investment place or not. Generally speaking, I think New Zealand has a very good reputation in China, and we hope you value that."

- NZME.