Canada may replace Australia as China's favourite investment destination: study
17 September 2009
Canada is likely to replace Australia as the preferred investment destination for Chinese investors, who are eyeing the energy, natural resources, agriculture and biotechnology sector of the North American country.
Armed with more than $2 trillion in foreign exchange reserves, China has supported its oil companies in making landmark overseas acquisitions since energy assets have fallen considerably due to the global economic downturn.
Chinese majors have moved into Canada this year making hi profile investments in the Canadian energy sector.
Wuhan Iron & Steel, China's fourth biggest steelmaker, acquired 19.9 per cent stake in Consolidated Thompson Iron Mines Limited for $240 million in June to gain access to iron ore.
CIC, the $300 billion Chinese sovereign wealth fund acquired a 17.2-per cent stake in Teck Mining Company (Teck Cominco), Canada's largest diversified miner for $1.5 billion in July to take advantage of its coal resources (See: China's CIC fund to invest $1.5 billion in Canadian miner).
Last month, state-owned oil giant, PetroChina agreed to acquire a 60-per cent stake in two planned Athabasca Oil Sands projects in Western Canada for $1.9 billion. (See: Petrochina buys 60 per cent stake in Canada's oilsands for $1.7 billion)