Big Chinese companies are starting to bid against each other for major Australian trophy assets under a shift in approach by a key Chinese regulator.
The $US9 billion ($12 billion) auction of the NSW electricity distributor TransGrid and Fortescue Metals Group's attempt to sell stakes in its iron ore mines, expected to raise more than $US2 billion, have attracted multiple Chinese bidders. 
Chris Carr, a senior associate at King & Wood Mallesons, said the way China's National Development and Reform Commission (NDRC) approaches outbound deals worth more than $US300 million could be evolving.
"What does it say about China's outbound approvals regime that you have at least two more high profile instances [Transgrid and Fortescue] where there have been multiple Chinese parties publicly named as actively pursuing Australian assets? You could probably add [the bidding for] Kidman & Co in there as well," he said.
The Chinese government has been loosening its outbound investment approvals regime. A bi-product of that has allowed multiple Chinese parties to bid on assets below a $US300m threshold without a so-called "road pass" that designates the company as the Chinese government's preferred bidder. The NDRC still has pre-deal oversight above that mark.
The TransGrid and Fortescue deals would be well above that threshold.
"It does throw open the question as to whether NDRC is taking a new approach for larger transactions and not just that sub-US$300m bracket," Mr Carr, who specialises in China and mergers and acquisition, said.
"It could also be that further evidence that they realise that their outbound approvals regime has hurt the prospects of Chinese bidders on outbound deals, particularly where the target is highly sought after. "
It is currently an open question, and could prove difficult for sellers to navigate.
The privatisation of TransGrid, the first leg of the New South Wales poles and wires sale, is expected to fetch about $US9 billion. Bidders include China Southern in partnership with China Investment Corporation and Global Infrastructure Partners, while State Grid is hooking up with Macquarie's infrastructure arm.
As for Fortescue Metals Group, four Chinese parties have been named as being in talks to buy equity in its Pilbara mining assets - Tewoo Group, Hebei Iron & Steel, privately owned Fosun and steel-making giant Baosteel.