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In an other example of growing ties between Brazil and China, both countries will cross-listing their stocks on each other’s respective stock exchanges.
For Brazil having its stocks listed on the Shanghai Stock Exchange offers Brazilian companies access to a larger source of capital and a new pool of liquidity.
For China its stocks can now be listed on the BM&FBovespa SA exchange, the biggest security exchange in Latin America. It is expected that a memorandum of understanding would be signed on Monday.
Investment experts see this is a win-win when two of the ‘fastest-growing economies in the world’ cross-border trade. China is seeking to attain status as a global financial center by 2020 and is attracting some of the world’s biggest companies for an international equities board and this deal with Brazil is a step in accomplishing that.
