Like it or not, Australia is fully dependant on China – a quasi economic colony.
Even aside politicians the reality is that China imports between 50 and 100% of any commodities. And Australia exports are commodities (over 65% of total).
If you understand that you understand the basis of the Australian market.
This year in November there is the all-important Chinese Party Congress – a specially important one as it a re-election Congress.
So this year, for President Xi, it was important that the Chinese economy looked good. As a consequence iron ore would have rallied and Australian Dollar would have rallied – and notwithstanding all the bad signs, Australia would have fared not so bad, at least.
The issue is that President Xi, after the Congress in 2018 will have really to address some issues (eg debt) in the Chinese economy and will have to slow down everything.
So next year, it will be much harder for Australia to rally hard.
Also the Chinese regulator has issued a list of banned (core military technology, gambling and sex industry, investment contrary to the national security) restricted investments (property development, hotel purchases, film, sports, entertainment, investments that contravene environmental standards)).
China will also stimulate investments in infrastructure as part of the One Belt Road (Australia has not signed yet), agriculture, fisheries, technology and advanced manufacturing, natural resources.
This will have to be a roadmap for any Australian investor 2018.
investorpolitico 