COMMENT: Year of the Panda
China Investment Corporation’s involvement in a consortium buying part of Brazil-based BTG Pactual marks a shift into financial assets for China.
It has been an avid
consumer of commodities, in particular Argentine oil, during a
2010 surge in volume of LatAm asset purchases by Chinese
We expect this trend to
continue, broadening into portfolio investment. Indeed, CIC's
president Gao Xiqing says the sovereign wealth fund, which
manages some $300 billion, will increase exposure to LatAm. The
region's borrowers are meanwhile getting more adventurous with
funding diversification. And G3-based investors seek record
exposure to fixed income assets denominated in emerging market
This should eventually translate into renminbi-denominated
issuance, following the example of McDonald's. The burger chain
in 2010 launched an RMB deal of...
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