As Australia-China relations hit a low point, we're seeing a trend of Aussie companies leaving China.
Background: CBA have got their banking fingers in a few pies. We're talkin' BNPL company Klarna, property exchange network PEXA...and China's Bank of Hangzhou (to name a few).
What happened: CBA is now selling off a 10% stake in Bank of Hangzhou for a whopping $1.8 billion. It'll hold on to its remaining 5.75% as a strategic investment.
What else: While CBA says it's all about prioritising growth closer to home...we're seeing a wider trend of Aussie companies leaving China.
💡As things between Australia and China have become politically sour, businesses and investors have been working on their China exit strategy.
💡Over the last 2 years, the Chinese government has made some pretty significant obstacles for Australian exporter to China. We've seen tariffs on wheat, wine and beef.
💡Westpac quit its operations in Hong Kong and mainland China just a year after it opened...and now, we're seeing CommBank reduce its investment in Bank of Hangzhou.
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