Australian Investment Blog

The Chinese equity market is now worth over $10 Trillion for the first time in history. The surge has been stimulated after China opened its borders to overseas investors, creating a gain of 60% in 2015 alone – see chart 1. Over the weekend, the Saudi Arabian stock market rose 1.3% prior to allowing direct access to foreign investors this week – see chart 2. The ASX200 has been knocked around 8% over recent weeks with “market talk” that the majority of the selling was used to fund gaining exposure to China. Hence the question of whether we will see selling in the Australia Energy Sector to fund some fund flow into Saudi Arabian stocks. Firstly, let’s revisit the 3 Energy stocks I watch carefully.