Developing countries’ share of worldwide equity value climbed to a record as the fastest- growing economies lured investors amid the first global recession since World War II.
The 22 nations classified as “emerging” by index provider MSCI Inc. comprised 24 percent of world market capitalization, up from 18 percent at the start of this year, the highest proportion since Bloomberg began compiling the data in 2003. China shares surpassed $3 trillion yesterday for the first time since August, from $1.8 trillion at the end of 2008.
So while they pour money into emerging economies the established nations are contracting.
As pointed out previously we have a wealth transfer going on.
Instead of raising all boats, the world financial, economic power centers are shifting away from 1st world nations.
China's CIC also just snapped up a 17% stake in a Canadian miner.
Demonstrating the country's continued interest in buying resource firms, the state-run China Investment Corp. on Friday reached a deal to buy a 17% stake in the Canadian miner Teck Resources.
It appears China has been snapping up all sorts of commodities and raw materials:
China, on the other hand, has been aggressively pursuing major acquisitions or investments in commodity companies. In the oil industry, the Chinese have become the most aggressive deal makers, taking advantage of low oil prices to help feed the country's energy needs.
Last week, China's Sinopec announced it will acquire oil explorer Addax Petroleum for $7.2 billion, in what would be the largest overseas takeover ever by a Chinese company. Sinopec, a refiner, would gain access to substantial reserves in West Africa and the Middle East if the takeover of Addax is approved.
Last month, China had won a deal to take a major stake in one of the world's largest miners, Rio Tinto PLC of Australia, but the deal was scrapped after it incited a political firestorm. Rio Tinto turned away the $19.5 billion investment from the Aluminum Corp. of China after lawmakers said Australia would lose control over an enormous amount of natural resources to a state-controlled company in China.