The Blackstone Group says it will invest as much as $600 million in China National Bluestar, bringing its stake in the company to 20%. Blackstone says that continued economic growth will foster long-term growth in China's chemical sector (China National Bluestar is a division of ChemChina, one of the largest producers of chemical products in China). This investment by Blackstone Group may be the end result of some quid pro quo: It's the firm's first Chinese investment since Beijing bought a $3 billion stake in BX, an asset that has thus far proved to be an underperformer.
The shares of Blackstone are down fractionally on the news to 21.40. The stock has dropped consistently since its initial public offering on June 22, and its newly visible 10-week moving average is pointed south-by-southeast, indicating that the downtrend will likely hold. However, option traders are firmly optimistic toward the stock its Schaeffer's put/call open interest ratio of 0.50 reveals that calls outnumber puts by 2-to-1 among near-term options.