On the #1 risk facing Australian equity investors Tim Carleton from Auscap Asset Management says Chinese steel demand is his major concern. Circa 10% of domestic GDP comes from the export of the bulk commodities. This figure is substantially higher if you include support service industries. Primary and secondary property sales are down over 30% in most cities in China over the first quarter. If this is a lead indicator for steel demand, then with China accounting for circa 50% of global steel production, the consequences for iron ore and coking coal are significant. This in turn has very important implications for the domestic economy. We don't own any resource companies.