BRIC IPOs Show Region’s ‘Growing Power,’ Biggs Says |

BRIC IPOs Show Region’s ‘Growing Power,’ Biggs Says

July 24 (Bloomberg) — The world’s two biggest initial public offerings this year are from China and Brazil, reflecting the “growing power” of the so-called BRIC nations, said Barton Biggs, who runs New York-based hedge fund Traxis Partners LP.

China State Construction Engineering Corp., the nation’s largest housing contractor, yesterday raised 16 billion yuan ($7.3 billion) in Shanghai in the largest IPO in 16 months. The Brazilian affiliate of Visa Inc., known as VisaNet, took in 8.4 billion reais ($4.3 billion) in its Sao Paulo offering in June.

“No question, it shows the growing power of the BRICs,” Barton Biggs, the former chief global strategist for Morgan Stanley, said in a telephone interview from New York. “Clearly the BRICs are the big growth areas of the world and will need a lot of foreign capital.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTrojrT34KXE

The chart below shows the ratio of EEM and SPY since 2003. It would seem that EEM needs a breather due to its STRONG rebound but in time I think we are going to find that delinking is very possible.

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