Chinese Investment in Brazil Rises

Infrastructure investment by Chinese companies in Brazil is gathering steam as economic activity stagnates in the South American country, Nikkei reported. HNA Group signed a deal in July to partially acquire the rights to manage Rio de Janeiro-Galeao International Airport, in the latest in a series of grid, port and other infrastructure purchases in Brazil by Chinese companies in recent years. The trend is expected to accelerate because Chinese companies are seen as possible buyers of many other infrastructure including water supply and sewage systems and oil-refining facilities. HNA, a leading Chinese conglomerate, will purchase a 31% stake in the company that manages the Rio airport from Odebrecht, according to an announcement by the major Brazilian construction company which did not disclose the value of the sale. The airport, refurbished for the 2016 Summer Olympics in the city, is the second busiest in the country. Among investors in the management company is the operator of Singapore Changi Airport.