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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