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Chinese companies "who many believe are backed by Chinese Government" are spending billions and billions on US companies. We have never seen such a massive flow of cash from China mostly after entertainment and hotel industries. The reason why they have largely avoided the tech industries is because US regulators have come in and stopped a lot of these massive deals. But I can imagine if tech companies where on the table the numbers would be stunning.
Outside of the US Saudi Arabia had a visit from the President of China who offered to buy what many believe is the largest company in the world Aramco for over a trillion dollars. Apparently this literally happened a week or two after Saudi announced they where exploring bringing Aramco public. Many believe China is actively running after these massive deals to shore up the value of renminbi. Apparently Saudi Arabia politely turned down the record breaking offer. It seems to show that China is trying to build its stock market and its significance as a world player in business.
Wall Street traders are having a full on freak out about these huge deals because they are spending well above what they feel are the value of these companies such as Starwood for 13.4 billion dollars. US companies in Starwoods case Marriott are being left in the dust because many believe China is backing these huge M&A deals. They want US regulators to get more involved even if they believe it is not in national security interests. Its pretty wild they where famous for plowing huge money now are being out played in deals they made famous.
http://www.cnbc.com/2016/03/29/marr...ood-hotels-in-anbang-bidding-war-analyst.html
http://www.usatoday.com/story/money/markets/2016/03/18/11-top-us-companies-targeted-china/81970226/
Outside of the US Saudi Arabia had a visit from the President of China who offered to buy what many believe is the largest company in the world Aramco for over a trillion dollars. Apparently this literally happened a week or two after Saudi announced they where exploring bringing Aramco public. Many believe China is actively running after these massive deals to shore up the value of renminbi. Apparently Saudi Arabia politely turned down the record breaking offer. It seems to show that China is trying to build its stock market and its significance as a world player in business.
Wall Street traders are having a full on freak out about these huge deals because they are spending well above what they feel are the value of these companies such as Starwood for 13.4 billion dollars. US companies in Starwoods case Marriott are being left in the dust because many believe China is backing these huge M&A deals. They want US regulators to get more involved even if they believe it is not in national security interests. Its pretty wild they where famous for plowing huge money now are being out played in deals they made famous.
http://www.cnbc.com/2016/03/29/marr...ood-hotels-in-anbang-bidding-war-analyst.html
http://www.usatoday.com/story/money/markets/2016/03/18/11-top-us-companies-targeted-china/81970226/