Juejin Australia Stock Market | 2025 Investment Layout Guide

Why Australian Stocks Are Becoming a New Choice

Many Taiwanese investors have long focused on U.S. and Taiwan stocks, with little knowledge of stocks in the Southern Hemisphere, such as Australia. However, recent global changes have gradually highlighted the investment value of Australian stocks.

Australia is one of the world’s richest countries in mineral resources, with the second-largest rare earth reserves, abundant iron ore, copper, and lithium resources. Since 1991, the Australian economy has only experienced a recession during the 2020 pandemic, with positive growth in all other years. Since 1990, the average annual return of the Australian stock market has reached 11.8%, with an average dividend yield of 4%, making it a preferred long-term investment target.

More importantly, Australia has a tax treaty with Taiwan. According to Article 10 of the Australia-Taiwan DTA, the withholding tax rate on dividends paid by Australian companies to Taiwanese residents is only 10-15%. Compared to the 30% withholding tax on U.S. dividends, the investment cost of Australian stocks is significantly lower.

The Shift in Australian Stocks in 2025: Three Major Drivers

Policy Shift Reshaping the Energy Landscape

The hydrogen strategy announced by Australian Federal Treasurer Chalmers has completely changed the investment logic. Starting in 2025, the Australian government will provide a subsidy of 2 AUD per kilogram of hydrogen exported and legislate to phase out all coal-fired power plants by 2030. Meanwhile, the EU’s carbon border adjustment mechanism has also come into effect, forcing Australian resource giants to accelerate investments in clean technology.

Traditional mining giants like BHP( have announced a 3 billion AUD investment in carbon capture projects, aiming for a 30% reduction in emissions by 2030. This means that technologically advanced mining companies will enjoy valuation premiums, while companies stuck in old ways face the risk of valuation traps.

) New Demands Driven by AI and Electric Vehicles

Global AI data center construction is booming, sharply increasing demand for copper, which is essential for “electric old-timers.” At the same time, the electric vehicle industry is exploding, and copper shortages have become a reality. By 2025, copper may become scarcer than lithium.

Although lithium prices plummeted 30% in 2024, this has taught Australian mining companies a new way to survive—rather than engaging in price wars, they sign long-term contracts with major clients like Tesla. Unlike overcapacity at the technological level, strategically locking in demand has become a new competitive advantage.

Geopolitical Reshaping of the Resource Map

Against the backdrop of U.S.-China tensions, Australia, as the world’s second-largest rare earth reserve country, has seen its strategic position heat up. The U.S. Department of Defense is accelerating investments in Australian mining companies to reduce dependence on Chinese rare earths. This presents unprecedented opportunities for Australian related enterprises.

However, competition from cheap Indonesian and Vietnamese rare earths is also intensifying. Australian companies must rely on technological refining advantages to maintain high-value segments.

Nine Major Investment Targets in Australian Stocks in 2025

① FMG Fortescue (Dual Drive of Iron Ore and Green Hydrogen)

Fortescue###'s core business is iron ore mining, contributing 80% of its revenue. But the real growth engine is its green hydrogen subsidiary FFI, which plans to achieve an annual production of 15 million tons of green hydrogen by 2030.

FMG’s unique advantage lies in using profits from traditional iron ore operations to fund green hydrogen development, effectively having a continuous “cash cow” to support the money-burning new business. Once green hydrogen becomes profitable, FMG could become the “Saudi Arabia of hydrogen.” Although short-term technical and cash flow risks exist, the long-term potential is significant.

( ② BHP Group (The Global Copper Mine “Gatekeeper”)

BHP) contributed 65% of the group’s profit from iron ore in 2024. Its massive cash flow supports a dividend yield of 5.8%, far above the Australian stock average. More critically, the company controls the world’s largest copper mine, Escondida (located in Chile), with capacity expanding to 1.4 million tons in 2025, just as demand from AI and electric vehicles surges.

Additionally, BHP signed a 10-year copper supply agreement with Tesla, tying growth benefits to the electric vehicle leader. Asian coal prices have risen due to geopolitical conflicts, with BHP’s Queensland coking coal cost at only 80 AUD/ton, while spot prices reach 320 AUD/ton, with profit margins expected to continue until 2026. Unless there is a major global economic downturn or mineral price collapse, BHP’s stock is characterized by limited downside, substantial upside, and high dividend yield.

③ Rio Tinto (A Low-Asset, High-Yield Choice)

Compared to BHP, Rio Tinto( has lighter assets and lower debt ratios. In a high-interest environment, lower debt means lower financial costs. If interest rates remain high longer than expected, Rio’s cash flow will be healthier than BHP’s.

Rio’s dividend yield is about 6%, higher than BHP’s 5.8%, making it a top choice for investors seeking high income. The trade-off is smaller scale and higher unit costs; when mineral demand surges, profit growth may lag behind BHP.

) ④ Commonwealth Bank of Australia (The “Anchor” of the Financial Sector)

Commonwealth Bank( (CBA) is regarded as a defensive fortress in the Australian financial sector. In a high-interest environment, if the Reserve Bank of Australia) (RBA) begins to cut rates, mortgage default risks will further ease. Currently, the non-performing loan rate remains at a manageable 0.4%.

CBA’s average dividend yield over the past five years is 5.2%, well above the four major banks’ average of 4.5%, and it has achieved 28 consecutive years of dividend growth, making it popular among retirees. In the long run, whether global economic conditions improve or geopolitical conflicts intensify, CBA’s business is expected to grow—either through direct expansion or increased customer base driven by immigration. Therefore, CBA has relatively low long-term investment risk.

⑤ Sandfire Resources (The “Killer” of Copper Mine Cost)

Sandfire Resources( (SFR) demonstrates a strong cost advantage in copper mining. Its Motheo mine in Mozambique has a copper grade of 6%, far above the global average of 0.8%, with production costs only 1.5 AUD/lb, well below peers’ 2.8 AUD/lb. This cost gap translates into excess profits amid copper price fluctuations.

Projected 2025 annual capacity is 200,000 tons. Even more exciting, Sandfire signed a five-year supply agreement with Tesla, ensuring 50% of its capacity is sold at London Metal Exchange (LME) copper prices plus a 10% premium, locking in revenue stability. Copper prices are expected to rise to 12,000 AUD/ton, making Sandfire a “leverage tool” for rising copper prices.

) ⑥ CSL Limited (The “Hidden Champion” of Medical Technology)

CSL( (CSL) builds its investment logic on Australia’s aging population. Over 5 million Australians are over 65, and government Medicare budgets are rising annually. In this context, companies that help reduce government healthcare costs naturally become “favorites” of the government and insurance agencies.

CSL’s core strengths include controlling 45% of global plasma collection sites, with purification technology costs 20% lower than competitors; influenza vaccine market share reaching 30%, with performance peaking during severe winter epidemics; rare disease drugs priced over 100,000 USD per dose, with government medical insurance providing full coverage. Although 2024 market funds are focused on AI industries and medical stocks have not risen as expected, these companies may see a rebound in 2025.

) ⑦ Westfarmers Group (The “Safe Haven” of Retail)

Westfarmers### (WES) is Australia’s largest retailer. In 2024, it is already in a favorable period for retail, driven by consumer demand recovery. Compared to many AI stocks that are often overvalued, retail stocks have more rational valuations and smaller bubbles. From a hedging perspective, WES is an excellent choice for diversified risk.

The company is currently in a bullish trend. Long-term investors can buy regularly; swing traders can buy when the stock price hits the lower Bollinger Band and sell at the upper band or previous highs.

( ⑧ Zip Co Limited) (The “Revival Path” of Buy Now, Pay Later)

Zip( (ZIP) belongs to the Buy Now, Pay Later (BNPL) sector, with a revenue model similar to credit card companies like VISA and Mastercard. Over the past two years, rising interest rates have been the biggest killer for BNPL, as its customers are mostly financially vulnerable, with high default risks. ZIP’s stock price fell from a peak of around 14 AUD to about 0.25 AUD.

However, as the rate hike cycle ends, the situation begins to turn around. Business volume recovers, and bad debt rates decline. The stock price has rebounded to 3.1 AUD. With the pace of rate cuts accelerating in 2025, bad debts will further decrease, and the customer base will continue to grow.

) ⑨ Gamin Group( (The “Rent Collection Giant” in Logistics Real Estate)

Gamin Group) (GMG) is Australia’s largest real estate developer, essentially a real estate investment trust (REIT), mainly investing in warehouses, logistics centers, and commercial offices. Its main income comes from rent and management fees.

GMG controls 65% of Australia’s top logistics warehouse resources, including strategic locations like Sydney’s Mascot Park. Major clients such as Amazon and Coles are signing long-term leases of at least 8 years, with occupancy rates reaching 98%. Twelve consecutive years of dividend growth and stable net profit margins make it clearly superior to peers.

As Australia’s inflation eases and the economy recovers, rents and property prices are rising, and GMG’s net asset value and profits are steadily increasing. The stock price has been steadily rising since Q4 2022. Entering a rate-cut cycle, lower capital costs will further benefit the real estate industry, and profits are expected to continue rising this year.

Three Major Advantages of Investing in Australian Stocks

Advantage One: Certainty of Long-Term Growth

As the most developed economy in the Southern Hemisphere, Australia relies on abundant agriculture and mineral resources, demonstrating remarkable resilience. It has only experienced one recession in 33 years during the pandemic, with positive growth in all other years. The Australian stock market’s average annual return is 11.8%, with an average dividend yield of 4%. Essentially, it is a asset class tailored for long-term investment.

Advantage Two: A “Safe Harbor” in Global Political Risks

Historically, investors focused on U.S., Taiwan, Hong Kong, and Japanese stocks mainly due to geographic proximity and media focus. But as global geopolitical risks escalate, Australia ranks high in global political and economic stability, becoming an ideal destination for capital transfer.

Advantage Three: The “Hidden” Tax Cost Advantage

The Australia-Taiwan tax treaty stipulates that the withholding tax on dividends paid by Australian companies to Taiwanese residents is only 10-15%, far below the 30% on U.S. dividends. This means that for the same dividend income, Australian stock investors can enjoy higher net returns.

Investment Insights for Australian Stocks in 2025

Australian stocks are known for stable profits and high dividends over the long term. Over the past decade, they have gradually faded from investors’ view due to increased global supply and the depreciation of the Australian dollar. But the post-pandemic era’s multiple changes—such as global emphasis on environmental protection, accelerated energy transition, and rising geopolitical risks—are reactivating the investment value of Australian resource countries.

Looking ahead to 2025, the federal election will reshape energy subsidy policies, AI computing power will redefine mining valuations, and the retreat of high interest rates will trigger a new wave of asset rotation. The appeal of Australian stocks lies not just in hedging but in the excess returns embedded in volatility. Instead of passively predicting market direction, it’s better to actively build an investment strategy suited to one’s risk preferences.