Wave of China money piles into Aussie banks, fuelling rally

Source: afr.com afr.com

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The MSCI Asia-Pacific ex-Japan Index, which MST says is the largest benchmark for international investors into Australia, has significantly underperformed global indices over the past year due to its 24 per cent allocation to China. That has reduced the benchmark’s weighting to both India and Australia to 17 per cent. But if foreign investors wanted exposure to the region that excludes China, the allocation to Australia would jump to nearly 23 per cent, triggering flows into the ASX’s largest companies, like BHP, Commonwealth Bank and CSL. Indeed, investors have been pouring cash into blue chip Australian equity funds over the...