Fosun International Limited (HKG:0656) Expands to Brazil

Fosun International Limited (HKG:0656) Expands to Brazil

Fosun International Limited (HKG:0656) Expands to Brazil

Fosun International Limited (HKG:0656) signed an agreement to acquire Brazil-based investment management firm Rio Bravo.

Fosun, which has interests ranging from property to mining, said it will buy the controlling share of privately-owned Rio Bravo Investimentos.

FOSUN INTL closed down -0.220 at 10.140. Volume was 3% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
10.400 10.440 10.040 10.140 9,973,866

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 10.29 10.28 11.49
Volatility: 20 30 41
Volume: 9,728,422 10,260,516 11,532,201

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOSUN INTL is currently 11.8% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of 0656.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on 0656.HK and have had this outlook for the last 6 periods.

China is Expanding at a Global Level

The Chinese government is encouraging companies to invest abroad to gain access to foreign markets and technology, as economic growth stalls at home.

Fosun chairman Guo Guangchang said the latest deal was an “important milestone for the laying out of Fosun’s globalisation strategy of being present in the important emerging economies.”

Fosun intends to use the acquisition as a gateway to Brazil and the Latin American region in business areas such as property and investment, the statement said.

The Chinese conglomerate announced on Friday that its pharmaceutical unit would buy just over an 86 percent stake in India’s Gland Pharma for up to 1.26 billion.

And earlier this month, it completed a takeover of the English Championship football club Wolves.

Fosun chairman Guo has been described as China’s Warren Buffet. Hong Kong-listed Fosun also owns Club Med and has a stake in Cirque du Soleil.

Guo mysteriously disappeared for several days in December before re-emerging, and his company said he was “assisting” in investigations by authorities. The incident initially raised alarm among investors who feared he had run afoul of the law.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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