Further thoughts on Chinese money in Buenos Aires
Last the last month I observed the new presence the Industrial & Commercial Bank of China in town and exclaimed at the wonder of all the new Chinese businesses. I wondered out loud if it might be a harbinger of what was to come based on my experience in Los Angeles.
I read a couple of articles this week that helped me further connect the dots on why you might look favorably on Bueno Aires now.
[URL]http://www.zerohedge.com/news/2014-07-10/did-china-just-crush-us-housing-market[/URL]
Perhaps the Chinese are laundering money in Buenos Aires also through the ICBC. It is probably a less desirable place than Los Angeles because of rule of law issues.
Then there was Byron Wien's annual "Smartest Man In Europe" essay where "the smartest man" states he is "bullish on Argentina. ".
"As for the rest of the world, I am pretty bored. I think Indonesia is basically a commodities rather than industrial market and if commodities do well, so will the country's equities, but I can't predict commodity prices. In Latin America I am bullish on Argentina; Brazil will recover, but it is too early to invest now. ".
[URL]http://blackstone.com/news-views/market-commentary/blog-detail/byron[/URL]'s-market-commentary /2014/07/02/ the-smartest-man-in-europe-sees-a-new-industrial-revolution.
Unfortunately "the smartest man" does not explain why.
So for those of you who are selling Argentina these days it might be instructive to look who buying what you are selling. Buyers and sellers afterall make the market.
For me, I bought a full position in IDCBY two weeks ago. One of my wirehouse brokers had a buy recommendation on it.
Would like hear your insights.
[QUOTE=BigBossMan;440439]Last the last month I observed the new presence the Industrial & Commercial Bank of China in town and exclaimed at the wonder of all the new Chinese businesses. I wondered out loud if it might be a harbinger of what was to come based on my experience in Los Angeles.[/QUOTE]Please expound, very interesting.
Stranger--I think BBM is talking about culturally Arg is western
Politically, Argentina does what is good for the political class and ultra rich. WWII neutral to make money from both sides until the very end. Al Qaeda did their banking in Argentina and ciudad del este. The ridiculous banking system was allowed to exist to further money laundering by wealthy argentines when tended to frequently do things in negro with their personal funds.
Maybe the jig is up already!
[URL]http://online.wsj.com/articles/chinese-banks-halt-experimental-yuan-remittance-program-1405345453[/URL]
China's major banks have halted an experimental program, sanctioned by the country's central bank, that helped citizens transfer large sums overseas despite government capital controls, according to people with knowledge of the matter.
The halt, which the people said was likely to be temporary, comes after the program was criticized by China's powerful state television broadcaster, underscoring the political sensitivity of the issue of wealthy Chinese moving money abroad. Experts said the criticism could set back China's efforts to ease its grip on the country's financial system.
Big commercial banks including Bank of China Ltd. 601988. SH +0. 39% , Industrial & Commercial Bank of China Ltd. 601398. SH +0. 29% and China Citic Bank Corp. 601998. SH +1. 41% have halted the program, which allowed Chinese to remit their yuan across borders, the people said. The halt came after the People's Bank of China, the central bank, started to look into allegations that Bank of China had used the program to help clients launder money, they said.
BBM--will China eventually buy 80% of Argentina?
6 or 7 years ago, I had a Chinese friend who spoke perfect english. He was buying mountains, barren land without water and mountians for the glaziers. I asked him why? He said today our money is undervalued and any hard asset that may have value in 20 years is better than cash.
China's Big Investment in Argentina
Draw your own conclusions from the below link.
[URL]http://finance.yahoo.com/news/china-announces-heavy-investments-argentina-071608537.html[/URL]
Tres3.