COMMENT: Year of the Panda

Jan 1, 2011

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 buyers.

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 currencies.

This should eventually translate into renminbi-denominated issuance, following the example of McDonald's. The burger chain in 2010 launched an RMB deal of...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial



LatinFinance Events

Poll

Are populist governments like Venezuela & Argentina turning pragmatic?

Vote    




“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management