It was hard to ignore the swells in yesterday’s U.S. stocks that took place in response to speculation of global policy makers’ possible plans for economic growth stimulation. However, the US wasn’t the only country to see its stock prices move up so aggressively. CNN reported China’s overseas investments surged to more than $21B, as state-owned companies obtained various global resource-related assets.
A report compiled by private equity firm A Capitol revealed that Europe’s delicate state continues to capture the attention of Chinese companies. Drawing them to the scene is undoubtedly the alluring possibility of obtaining equity at undervalued prices. In fact, China’s second largest destination for investment is Europe; which accounts for 16 percent of outbound mergers and acquisitions.
This number has actually fallen from last years reported 37 percent, due largely to a shift in capital interest towards the realm of resource-related assets. One of China’s largest European investments lies in Thames Waters Company, the UK’s largest water and wastewater treatment establishment. Though the exact amount of appropriated equity isn’t known for sure, the investment is valued at about $778B.
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