Chinese insurance and investment conglomerate Fosun International snapped up Brazilian asset manager Guide Investimentos for US$52 million on Tuesday, reversing a trend of disinvestment after the central government came after conglomerates with excessive outbound investments. Shaun Rein, author of The War for China’s Wallet: Profiting from the New World Order, explains in the South China Morning Post why Brazil is such a popular destination.
The South China Morning Post:
“Fosun is regaining pace – it seems like a signal that political pressure is easing for the company,” said Shaun Rein, the managing director of Shanghai-based market intelligence company China Market Research and author of The War for China’s Wallet: Profiting from the New World Order.
“Brazil is attractive given its market size and population. The asset prices are also attractive there, compared with those in Southeast Asia, which gained a lot of investment from China last year,” he said.
Tuesday’s deal is the second acquisition of a Brazilian financial institution by Fosun. In July 2016, the group bought Brazilian fund manager Rio Bravo Investimentos, its first acquisition in Latin America.
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