Ann: Response to Media Speculation Regarding Potential Asset Sale, page-17

Hi blox,

I'll try. I am no good at this stuff either, but I do have an opinion. I think asset purchases is more driven by economics and in some aspects by politics. In my opinion, investors who buy assets worth billions are looking for value and stability over a very long time horizon at attractive prices. When you spend billions, the millions in FX looks petty.

Australia and New Zealand are the only developed nations in the Pacific region. With China FTA in the horizon and Australia's participation in the Asian Infrastructure Investment Bank and China's political moves in Hong Kong and Taiwan(which gives China access to trade routes in the Pacific Ocean), I think that Australia is of strategic significance to China.

China required materials to build infrastructure and food and they have been importing vast amounts of Iron ore from Australia and food supplies such as Milk from New Zealand. China's soil is losing fertility and cities are polluted as a side-effect of their strong manufacturing sector. I believe that they were too greedy to reach the quality of Western economies and have realized the carelessness. Hence, they are in a slowdown mode and reconsidering their strategy. When China decides what it must do, it will once again require access to raw materials as it attempts to join the developed nations. Hence, I see that there is plenty of value for the Chinese to invest in Australia.