The pressure to slow down growth in China has put at least one New Zealand asset manager off investing into Australia.
Greg Peacock, head of research at New Zealand Asset Management, said its investment manager in Australia had recommended pulling all its investment out of the lucky country.
"From our perspective Australia is not a place we have to be invested. We had one Australian manager who phoned us eight weeks ago and said we can have our money back because the prospects of making decent returns are not there."
Peacock said China's desire to slow growth and switch from export-driven growth to domestic growth was the main factor.
"Stimulating domestic demand doesn't require as many commodities. They will still need them but it does potentially have an impact on the price of them.