Neste post a segunda parte sobre os fundos soberanos.Great Wall Street of China
By RICK CAREW in Beijing, LAURA SANTINI in Hong Kong and JAMES T. AREDDY
China made its biggest overseas foray to date in October when its biggest bank, Industrial & Commercial Bank of China Ltd., announced the purchase of a $5.6 billion stake in Africa's largest lender, South Africa's Standard Bank Group Ltd.
China has the money to spend because of its ballooning trade surplus with the rest of the world, as well as a local stock-market boom that has raised tens of billions of dollars for giant state-owned firms. China's foreign reserves rank as the world's largest at more than $1.4 trillion.
The terms of the Morgan Stanley deal guarantee CIC a 9% annual return, well above the fund's 5% cost of funding until it converts its investment to shares in 2010.
For Morgan Stanley, the deal could offer it some measure of goodwill in a country that has remained elusive to Wall Street.
In the 1990s, Morgan Stanley formed the first onshore investment-banking joint venture, China International Capital Corp., with a Chinese state bank. That venture later suffered from disagreements between the two partners, and Morgan Stanley became a passive investor, still holding a 34% stake.
Reaching out to Chinese money is a natural move for Morgan Chairman and Chief Executive John Mack, perhaps the top U.S. financial executive left with deep ties to China.
Since returning to Morgan Stanley from Credit Suisse in the summer of 2005, Mr. Mack has pushed his China team to build a broader platform in China. He recently signed a deal to re-enter the Chinese domestic markets, while Morgan Stanley has also bought a small Chinese bank and a stake in a fund-management venture.
All of those deals beef up the bank's China presence at a time when Morgan Stanley, like most of its rivals, still does most of its China business out of Hong Kong by linking Chinese companies to global capital markets.
Still, striking deals in China has become increasingly difficult, as Beijing fears some Chinese assets have gone to foreign investors too cheaply in the past. Skyrocketing stock prices have contributed to this feeling and prompted regulators to scuttle deals by Western firms.
Though China continues to attract the world's highest levels of foreign direct investment -- $61.68 billion in the first 11 months of this year, an increase of 14% on the year -- the size of the biggest outbound investment deals have this year far exceeded inbound investments.
The top five outbound investments from China were for an average of $3.1 billion, according to Thomson Financial, while the top inbound deals were for an average of $202 million.
China has the money to spend because of its ballooning trade surplus with the rest of the world, as well as a local stock-market boom that has raised tens of billions of dollars for giant state-owned firms. China's foreign reserves rank as the world's largest at more than $1.4 trillion.
The terms of the Morgan Stanley deal guarantee CIC a 9% annual return, well above the fund's 5% cost of funding until it converts its investment to shares in 2010.
For Morgan Stanley, the deal could offer it some measure of goodwill in a country that has remained elusive to Wall Street.
In the 1990s, Morgan Stanley formed the first onshore investment-banking joint venture, China International Capital Corp., with a Chinese state bank. That venture later suffered from disagreements between the two partners, and Morgan Stanley became a passive investor, still holding a 34% stake.
Reaching out to Chinese money is a natural move for Morgan Chairman and Chief Executive John Mack, perhaps the top U.S. financial executive left with deep ties to China.
Since returning to Morgan Stanley from Credit Suisse in the summer of 2005, Mr. Mack has pushed his China team to build a broader platform in China. He recently signed a deal to re-enter the Chinese domestic markets, while Morgan Stanley has also bought a small Chinese bank and a stake in a fund-management venture.
All of those deals beef up the bank's China presence at a time when Morgan Stanley, like most of its rivals, still does most of its China business out of Hong Kong by linking Chinese companies to global capital markets.
Still, striking deals in China has become increasingly difficult, as Beijing fears some Chinese assets have gone to foreign investors too cheaply in the past. Skyrocketing stock prices have contributed to this feeling and prompted regulators to scuttle deals by Western firms.
Though China continues to attract the world's highest levels of foreign direct investment -- $61.68 billion in the first 11 months of this year, an increase of 14% on the year -- the size of the biggest outbound investment deals have this year far exceeded inbound investments.
The top five outbound investments from China were for an average of $3.1 billion, according to Thomson Financial, while the top inbound deals were for an average of $202 million.
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