Managed around a daily reference rate

When China's property market slumped after 2021, what took a hit around the world?

Demand for steel, copper and iron ore

Why China moves the world

When China sneezes, commodity markets catch a cold. It's the world's biggest exporter, biggest manufacturer and second-largest economy.
It's also the biggest buyer of raw materials: about half the world's copper and roughly 70% of the iron ore shipped by sea.
When China builds, metal prices rise, and so do the currencies of exporters like the Australian dollar, the Chilean peso and the Brazilian real.
When China slows, as when its property boom turned to bust after 2021, demand for steel and copper drops, and exporters from Australia to Indonesia feel it.
China manages its currency, the yuan (renminbi). Each morning the central bank sets a reference rate, and the onshore yuan can move only 2% either side of it.
Common mistake
Mistake: thinking China only matters for Chinese stocks. Its demand moves oil, metals, palm oil and soybeans, and the currencies of the countries that sell them.
Key takeaway
China's growth drives commodity demand. Watch its data if you follow metals or commodity currencies.

When China's economy slows, the Australian dollar often... WeakensAustralia ships much of its iron ore to China, so less Chinese demand hurts its currency.
China buys a huge share of the world's... Copper and iron oreIts factories, cities and infrastructure need enormous amounts of metal.
The yuan is... Managed around a daily reference rateThe central bank sets a rate each day and limits how far the currency can move.
When China's property market slumped after 2021, what took a hit around the world? Demand for steel, copper and iron oreFewer buildings means less metal, which hit miners and exporters worldwide.