China’s CICC sees an opportunity in Brazil as a possible office. According to Lindsay Lin, CICC’s Head of Americas, the securities company China International Capital Corp. (3908. HK) sees more potential for cross-border dealings in Brazil. It may consider setting up an office there. Lin made this statement during an interview at the Reuters Next conference in New York.

China is Brazil’s most prominent commercial partner, but according to the Brazil-China Business Council (CEBC) in August, Chinese investments in Brazil decreased by 78% in 2022.

“We believe that more Chinese investors will be willing to invest in the Latin America region, especially in Brazil,” Lin stated. She stated that CICC “might consider” setting up shop in the nation.

During a recent visit to Latin America, Lin stated that the CICC saw significant prospects since the continent has “rich natural resources, which are actually a great complement to China.”

Clients in the United States, where CICC established a New York office in 2007 to offer corporate finance, stocks, and research services, express a particular interest in China’s economy, where CICC projects growth of 5.3% in 2023, according to Lin.

On Tuesday, the International Monetary Fund predicted that China’s GDP might only reach 4.6% in 2024 due to persistent weakness in the country’s real estate market and weakening foreign demand.

Issues in China’s highly leveraged real estate market, which includes massive China Evergrande (3333. HK) and Country Garden (2007. HK), the largest private property developer in the country, have raised worries about a more comprehensive financial crisis.

Lin stated, “For creditors and investors, you should never believe a company is too big to fail,” but she also emphasized that the risk was managed since the Chinese government had been keeping an eye on the industry. Lin expressed her desire for a comeback to higher deal volumes. According to LSEG, the total value of globally disclosed M&A agreements decreased by 27% in the first three quarters of 2023. According to LSEG statistics, deals in which a U.S. acquirer acquired a Chinese firm decreased by 20%.

Lin remarked, “This year is tranquil,” concerning M&A. The decline coincides with an increasingly strained relationship between the United States and China. President Biden of the United States signed an executive order in August that forbids any further American investment in critical technology in China.

“We should leave the investment to the business people to decide,” Lin stated. Looking back on her 21 years in business, Lin remarked, “I don’t remember when politics got so involved in daily business.”

Chinese firms’ initial public offerings (IPOs) in the United States are far from their peak. According to LSEG statistics, as of early November, Chinese companies have raised over $400 million through U.S. listings this year, more than they had presented last year ($100 million), but still a tiny portion of the nearly $12 billion in 2021.

For many years, Chinese firms valued New York as a listing location. Still, a catastrophic offering by the ride-hailing giant Didi Global in the middle of 2021 sparked a regulatory reaction.

Lin said that 20 Chinese ADRs had received a preapproval from the China Securities Regulatory Commission, the country’s securities watchdog and that there were still Chinese firms listed here.

Thus, Lin continued, “We’re still optimistic, and we still have hope that things will improve in terms of relationships and business activities in 2024.”