Table 30.18 shows that the value of equity on issue by Australian enterprise groups at 30 June 2001 stood at $1,224b. Of this total, 68% related to shares or equivalent equity interests issued by corporate trading enterprises. Banks accounted for a further 14% of total equity issued, while lesser amounts were issued by non-bank deposit taking institutions (2% of the total), the central bank (1%) and other financial sub-sectors, including life offices and superannuation funds (15%).
Of the total equity on issue by Australian enterprise groups at 30 June 2001, non-residents held equity valued at $354b (29%), while residents held $870b (71%).
Although the proportion of equity held by non-residents has remained relatively stable, the total value of equity on issue has increased by 62%, from $757b to $1,224b, over the period from 30 June 1997 to 30 June 2001.
Analysed by sub-sector, at 30 June 2001 non-residents held 34% of the equity in corporate trading enterprises, which has changed little over recent years. The value of equity on issue by corporate trading enterprises at 30 June 2001 increased only marginally on the previous year (2%).
The amount issued by banks has increased by 92% over the period from 30 June 1997 to 30 June 2001, while the proportion of non-resident holdings of the total equity issued by banks has risen from 21% to 26% over the same period.
Although the value of equity issued by life offices, superannuation funds and other financial institutions has increased nearly 140% over the period from 30 June 1997 to 30 June 2001, the foreign ownership of this equity has fallen from 16% at 30 June 1997 to 12% at 30 June 2001.
Data for equity on issue by unlisted corporations are of lesser quality than the data supplied by the Australian Stock Exchange for listed corporations. Data for unlisted corporations are compiled from returns supplied in the ABS Survey of Financial Information, ABS Survey of International Investment, selected annual reports, and estimates synthesised from analysing residual items in demand and supply tables for the various share markets.
In terms of the analysis undertaken here, errors in the estimated market value of equity on issue will impact on the accuracy of estimates of the proportion of that equity owned by non-residents.
30.18 FOREIGN OWNERSHIP OF EQUITY(a) - At 30 June |
|
| | Units | 1997 | 1998 | 1999 | 2000 | 2001 |
|
ALL SECTORS COMBINED |
|
| Amount issued | $b | 756.7 | 878.5 | 998.6 | 1,140.6 | 1,223.5 |
| Amount held by rest of world | $b | 217.1 | 249.5 | 288.7 | 328.4 | 353.5 |
| Percentage of foreign ownership | % | 29 | 28 | 29 | 29 | 29 |
|
SUB-SECTORS |
|
| Corporate trading enterprises(b) | | | | | | |
| - Amount issued(c) | $b | 562.9 | 608.5 | 732.2 | 814.4 | 833.9 |
| - Amount held by rest of world | $b | 181.0 | 201.8 | 240.6 | 275.6 | 281.6 |
| - Percentage of foreign ownership | % | 32 | 33 | 33 | 34 | 34 |
| Banks | |  | | | | |
| - Amount issued(c) | $b | 92.5 | 103.6 | 112.8 | 138.2 | 177.3 |
| - Amount held by rest of world | $b | 19.2 | 25.1 | 28.3 | 31.2 | 45.7 |
| - Percentage of foreign ownership | % | 21 | 24 | 25 | 23 | 26 |
| Non-bank deposit taking institutions | | | | | | |
| - Amount issued(c) | $b | 15.9 | 15.8 | 16.5 | 16.8 | 18.7 |
| - Amount held by rest of world | $b | 4.5 | 4.3 | 4.0 | 3.7 | 4.0 |
| - Percentage of foreign ownership | % | 29 | 28 | 24 | 22 | 21 |
| Other financial sub-sectors(d) | | | | | | |
| - Amount issued(c) | $b | 75.7 | 138.0 | 126.2 | 160.8 | 181.3 |
| - Amount held by rest of world | $b | 12.3 | 18.2 | 15.8 | 17.9 | 22.3 |
| - Percentage of foreign ownership | % | 16 | 13 | 12 | 11 | 12 |
| Central bank | | | | | | |
| - Amount issued(e)(f) | $b | 9.7 | 12.6 | 10.9 | 10.4 | 12.3 |
|
(a) Equity includes units in trusts.
(b) Includes private non-financial corporations, and Commonwealth, State and local public non-financial corporations.
(c) These estimated market values are considered to be of poor quality. They should be used cautiously.
(d) Includes life offices and superannuation funds, central borrowing authorities, and other financial institutions.
(e) Net asset values.
(f) There is no foreign ownership in this sub-sector. |
Source: Australian National Accounts: Financial Accounts (5232.0); Balance of Payments and International Investment Position, Australia (5302.0). |
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