SHANGHAI, Dec. 7, 2010 /PRNewswire/ -- Erik Bethel, Managing Partner of SinoLatin Capital, the premier investment platform between China and Latin America, spoke at the Finance Asia -- Brazil Investment Summit in Hong Kong's Conrad Hotel on November 30th & December 1st. The Summit, attended by financial and strategic investors from China and Brazil, examined strategies and opportunities for Asian investors with interests in Brazil. Despite the global financial crisis, Brazil's economy has been booming in recent years. The Brazilian banking sector's high levels of capitalization, and a natural resources-led export surge, have allowed Brazil to remain relatively unaffected by the global economic crisis.
Mr. Bethel discussed the growth of China and how this directly impacts Brazil. Since the year 2000, trade between Brazil and China jumped from US$1.1 billion to US$36.1 billion. And this year, China surpassed the United States to become Brazil's largest investor. In the first six months of 2010, foreign direct investment (FDI) flows into Brazil reached an estimated US$10 billion, up from US$83 million during the same period last year.
According to Mr. Bethel, "Urbanization in China is critical to Brazil's economy." He added, "In the next two decades, 300-400 million people in China will move from the countryside to cities. Urbanization is one of the main drivers behind China's middle class growth, and Chinese middle class consumers have a commodity footprint that is similar to their global peers. Middle class consumers in China purchase automobiles, homes, and white goods. They eat higher amounts of protein and consume increasing amounts of electricity. All of this bodes well for Brazil, a country with ample amounts of arable land, soybeans, iron ore, and most recently, enormous oil reserves."
In short, claims Bethel, "Brazil will grow not just because of the 2014 World Cup or 2016 Olympic Games. It will also grow because it has the natural resources that China needs."
SinoLatin Capital is the premier investment platform between China and Latin America. It is a financial advisory and private equity firm that creates value for clients and investors while encouraging sustainable economic development in both regions. Headquartered in Shanghai's financial district and with offices in New York, SinoLatin Capital is the first merchant-banking firm focused exclusively on cross border transactions between China and Latin America.
SOURCE SinoLatin Capital