Chinese Capital Returns To Australia

Chinese capital flows into Australia surged in 2025 to levels not seen since 2013, supported by high Australian yields and an improving geopolitical climate. The report maintains a bullish stance on the AUD due to these persistent inflows.

Key Takeaways

• 1.Investment flows from China into Australia experienced a strong resurgence in 2025, reaching levels not observed since 2013.
• 2.Australian assets' attractiveness was bolstered by high yields, AAA sovereign status, and improving geopolitical ties with China.
• 3.The author remains bullish on AUD, citing its status as a top-yielding, credit-worthy G10 economy supporting debt-related inflows.

Table of Contents

• Chinese capital returns to Australia
• The return of China
• Why now?
• Who does Australia owe, and who owes Australia these days?
• Appendix 1