Broking firms typically cheer a rising market. That lures new investors into stocks, while already invested folks might book profits and churn scrips, all leading to increased volumes and more business for brokerages.
Mainland groups have already borrowed $12.2bn from international investors so far in 2011 – more than five times the amount they had secured by the same point last year, according to data provider Dealogic.
Half of the offshore bond issuance this year has come from privately-owned property companies – such as Evergrande, Country Garden and Longfor Properties – that have seen funding channels dry up on the mainland.
PE investors tend to like food companies as they grow fast and the business tends to be steady once a brand name has been established. With their growth potential and profits, these companies are considered safe investments. Also, as people get busier, the demand for processed food will increase.