China

Around a third of everything Australia exports goes to China — and the overwhelming majority of that is iron ore, coal, gas and other resources. When Chinese demand moves, Australian earnings move with it.

That relationship runs deepest through the resources sector. China buys roughly 70% of the world's seaborne iron ore, which makes its steel production the primary driver of prices for BHP, Rio Tinto and Fortescue — three of the largest companies on the ASX. But the exposure extends well beyond mining: consumer brands, education, tourism and agriculture all lean on Chinese demand.

What makes China difficult to invest around is that the signals rarely move in a straight line. Policy is announced in stages and delivered unevenly. Stimulus aimed at manufacturing capacity affects a very different set of ASX names than stimulus aimed at property construction.

Below you'll find Market Matters current view on China, the ASX stocks with the most direct exposure and where we stand on each, how the theme sits across our portfolios, and the reports, analysis and data we use to track it.