China Latin America Links Proliferate
Cultural barriers remain, but the China-LatAm relationship is starting to blossom. Both sides hope to convert dialogue into more frequent large transactions.
LatAm-China ties are strengthening by the day, with
the biggest acquisition on record by a Chinese firm in LatAm
taking place in October. A visit to the region by Chinas
president, plans by LatAms biggest miner to list in Hong
Kong and tough negotiating by the regions asset sellers
illustrate the growing complexity of the alliance.
The actual flow of money
is still relatively minor. Reports of multibillion dollar oil
supply deals being signed with Venezuela, Brazil and Ecuador
lack convincing detail and market participants on both sides
say that much of it is just talk. But positive momentum is
"We see Latin America as
a very important market for asset allocation," says He Ludwig,
head of public markets investment department at China
Investment Corporation (CIC), the sovereign wealth fund with
around $300 billion in assets under management (AUM).
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