Asian Investors generally speaking have a long-term horizon for investments and are less likely to react to volatility by liquidating positions based on short term market shocks. This shields stocks from price fluctuations due to institutional and retail sell-offs.

Asian investors are often the main off-takers of resources companies and have a unique vision and exclusive information on supply-demand that western capital markets do not have access to.

Asians have to allocate large pools of capital and they understand natural resources well, however most quality North American companies do not get coverage in Asia and are not well known.

Chinese and other Asian Investors have begun investing in  world-wide through equity

Traditionally Chinese Investors had made majority acquisitions at the asset level. However, In recent years there have been a growing number of Chinese and other Asian investors taking minority stakes in companies.

The level of sophistication of these investments reflects how Chinese and Indian companies are understanding better western capital markets and see the benefit of becoming share holders in companies which hold assets they might be interested in buying in the future or merely for financial gain purposes.

Features of Chinese Investments:

• Small positions of 5% to 20% of the company´s equity.
• Accompanied by an MoU to supply Capex to develop projects.
• Accompanied by a preferential off-take agreement.
• Companies increase their position over time.