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s China's economic reopening failed to stem the tide of its stock market downturn in 2023, a telling trend emerged: investors were increasingly turning away from Chinese assets. Bank of America dubbed this phenomenon "Anywhere but China" (ABC), highlighting the growing allure of investment strategies that excluded the country. Meanwhile, Japan's Nikkei 225 index continued to defy gravity, surpassing its 1980s bubble peak last year.

    The stark contrast between Chinese and Japanese stock performance has been attributed to a surge in ABC liquidity, with investors seeking safer havens elsewhere. However, this trend was short-lived as China's stocks rallied on the back of DeepSeek's AI breakthrough and waning concerns about US "exceptionalism". Yet, as tensions escalate between China and the US over trade, investor sentiment has soured once more.

    In Asia's commercial property markets, a similar ABC approach is gaining traction. Cross-border investors, particularly from the US and Europe, have been shunning Chinese assets in favor of safer bets elsewhere. The numbers tell the story: foreign investment in Chinese commercial real estate plummeted to $5.8 billion last year, its lowest level in over a decade. In contrast, Japan saw a record-breaking $16.5 billion in cross-border property deals, while India's institutional market experienced a surge in transaction volumes, with foreign investors accounting for nearly two-thirds of deals.