Experts: Record IPO in China and Brazil confirm the growing strength of BRIC

Record IPO in Brazil and China this year reflect the growing power of the so-called BRIC countries - Brazil, Russia, India and China, said the head of hedge fund Traxis Partners LP Barton Biggs, formerly principal analyst at the bank Morgan Stanley.

willingness of investors to invest in the assets of the biggest emerging markets is linked to expectations that the economy of Brazil and China recover from the recession was among the first in the world, the analyst believes the markets of developing countries in the Morgan Stanley Vinisius Silva.

As reported Bloomberg, Chinese developer China State Construction Engineering Corp. drew last week at the world's largest IPO in the last 16 months, 50.16 billion yuan ($ 7.3 billion). In doing so, investors were willing to buy shares of the company at 1.85 trillion yuan. The company was listed in Shanghai.

China's GDP, the third largest country in the world for this indicator, rose in the second quarter to 7.9% after an increase of 6.1% in January-March.

In June, the Brazilian unit of Visa Inc., known as VisaNet, obtained during the initial placement of shares of 8.4 billion Brazilian reals ($ 4.3 billion). VisaNet Shares registered on the stock exchange in Sao Paulo.

Obviously, the BRIC countries are the major growing regions in the world, and they require a large amount of foreign capital, - said B. Biggs.

According to the agency Bloomberg, the stock markets of the four BRIC showed the fastest growth this year among the 20 largest world equity markets in dollar terms.

Chinese Shanghai Composite Index soared since the beginning of the year by 85%, the Brazilian Bovespa - by 77%. Indian Sensex gained 61%, RTS index - 60%.

For comparison: the main stock index of U.S. Standard Poor s 500 grew by 8.4% from 1 January, the Japanese Nikkei 225 - by 7.5%.

largest IPO in U.S. this year is likely to be a subdivision of another Brazilian company JBS SA, the producer of beef. The company expects to attract during the initial placement of approximately $ 2 billion

At the moment, the biggest IPO in the United States since the beginning of the year is the placement of shares of Mead Johnson Nutrition Co., which attracted $ 828 million in February.

I do not think that the IPO market in the United States is dead - B. Biggs said, adding that the market, like others, will recover to the extent of improving the overall economic situation in the country.

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