January 28, 2011 / 9:44 AM / 7 years ago

FACTBOX-Investment flows to the BRICs in 2010

 Jan 28 (Reuters) - China extended its lead over the other three countries in the BRIC group of the world's largest emerging economies last year in terms of investment received, with FDI volumes surpassing $100 billion for the first time.
 Brazil, Russia and India are the other members of the BRIC foursome, which account for the lion's share of investment flows to emerging markets.
 *Thomson Reuters data shows BRICs accounted for a third of all emerging market mergers and acquisition deals last year and a tenth of the $2.4 billion in global M&A deals.
 Deals included Indian Bharti Airtel's (BRTI.BO) $9 billlion takeover of Zain's Africa operations and the $1.8 billion purchase of Ford's Volvo unit by China's Geely (0175.HK).
  
 * The BRICs accounted for over $121 billion in initial public offerings, or IPOs, in 2010 compared with $65.7 billion worth of IPO deals in 2009, ThomsonReuters data shows. China accounted for over $100 billion of this.
 The world's biggest IPO was by China's AgBank (1288.HK), the country's third-largest lender, which raised $22 billion via a dual listing in Hong Kong and Shanghai. 
  
 * Portfolio flows to the BRICs eased in 2010, with the exception of Russia. Russia was the best-performing BRIC stock market, gaining 23 percent, followed closely by India.
 But the MSCI BRIC index .MIBC00000PUS rose only 7.2 percent in 2010, weighed down by a 14.3 percent fall in China  .SSEC on fears of overheating and tighter monetary conditions.
 The index continues to underperform global stocks this year due to weakness in India and China. 
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 For a story on Indian equities click [ID:nLDE70L0C6]
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 EPFR Global data shows BRIC funds absorbed $1.021 billion in 2010, down from $5.629 billion in 2009. Chinese funds took in the most money at $4.43 billion, though this was down on 2009 levels but flows to Russian funds almost doubled over 2009.
  
 * The BRIC economies have rebounded fast from the global economic crisis. China's GDP grew 10.3 percent in 2010, overtaking Japan as the world's second-largest economy.
 Brazil is expected to have grown over 7 percent last year and India will likely end the fiscal year to March 2011 with 8.5 percent growth. Russian GDP is forecast to expand 4 percent last year compared with a 7.9 percent contraction in 2009.
  
 * On foreign direct investments, the United Nations Conference on Trade and Development (UNCTAD) said in its latest report that FDI flows to China topped $100 billion last year for the first time though flows to India fell 31.5 percent. 
 The data showed BRIC nations capturing almost 40 percent of the flows to developing world. 
 (For the UNCTAD monitor go to here
  
*Here is a set of tables detailing investment flows to BRICs:   NET INFLOWS (OUTFLOWS) TO EQUITY FUNDS (in billion dollars) 
FUND GROUP      2008    2009    2010 
BRIC funds     -2.93    5.63    1.021
Brazil         -0.184   5.18    1.456
Russia          1.6     1.86    3.155
India           2.5     3.44    1.098
China           3.0     7.52    1.200
All EM funds  -48.3    83.29   92.391
 (Source EPFR Global)  
  
 INITIAL PUBLIC OFFERINGS (in bln dlrs)  
 COUNTRY  2007        2008     2009    2010
 Brazil   30.6         4.5     13.2    6.26
 Russia   21.1          -       -      4.94
 India     8.4         4.3      4.0    8.56
 China    56.7        17.0     48.4  101.43
 (Source: ThomsonReuters)  
  
 MERGERS AND ACQUISITIONS (in bln dollars) 
 COUNTRY     2009    2010    Deals
 BRAZIL      83.7    80.6     484
 RUSSIA      33.3    32.5   3,079
 INDIA       19.4    48.8     870
 CHINA       76.8    93.5    1,141
 (ThomsonReuters)  
  
 CENTRAL BANK RESERVES (in bln dollars)  
 COUNTRY      Dec 2008    Dec 2009    Dec 2010 
 Brazil       205.0       239.2       288.5 
 Russia       438.2       443.7       476.1 
 India        250.4       285.7       297.3 
 China      1,946.0     2,300.0     2,850.0 
 (Source: central bank data) 
  
 FOREIGN DIRECT INVESTMENT (in bln dollars)  
 COUNTRY     2007     2008     2009   2010*
 Brazil      34.5     45.0     25.9   30.2
 Russia      55.0     75.4     38.7   39.7
 India       25.1     40.4     34.6   23.7
 China       83.5    108.3     95.0  101.0
 Global   1,978.8  1,770.8   1114.1 1122.0
 Developing 529.3    630.0    478.3  525.0
 BRICs      198.1    269.1    194.2  194.6
 *Preliminary estimates
 (Source: UNCTAD)    

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