China’s Woes Spell Caution for Australia’s Biggest Investors
- Australia’s sovereign wealth fund has reduced China exposure
- Cbus pension fund has lowered allocations amid concerns
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China’s property turmoil, increasing intervention in markets, and lackluster economic growth are combining to cloud the outlook for some of Australia’s largest investors that have been cutting allocations to Chinese assets.
Australia’s sovereign wealth fund says the return potential in China isn’t attractive, in part due to authorities’ stepping in to curb incentives for private investors in certain parts of its economy, such as gaming and education. Pension fund Construction & Building Unions Superannuation Fund has trimmed its China exposure and its CEO says it’s too early to be buying.