Is AIM China's New Window Onto Africa?

This week, we saw China Railway Materials Commercial Corp (CRM) conditionally agreeing to buy a 12.5% stake in African Minerals for GBP153mn. Also this week, a consortium of Chinese concerns, including Baiyin Non-Ferrous Group and CITIC investment group, bought control of Oxus Gold in a GBP115mn financing deal. What do these two deals have in common? In both cases, investment is of a smallish size and the targets are companies listed on London's Alternative Investment Market (AIM), which is the London Stock Exchange's market for smaller growing companies. This confirms CFW's view that 2010 Chinese investments in resources are unlikely

To read the full article, please choose one of the following options: