Fred, hold your red chips tight what I mean more than one year, you
will get unexpected happy result.
All the recently crazy actions in asia except in china are dued to the
later reaction to the southeast asia market crisis, if we want to find
out the reasons, we should point the our fingers to the china, China just appeared too competitive for these southeastasia nations on all over world market, especially they have very similar economic structures. Chinese threats have not had a great effects on the higher level countries like Taiwan, South Korean and Singpore, but we will see these threats in two or three years, watch out if you invested in
these countries. There would be nothing wrong with HongKong economy if China keep strong growth. In the first ten months of this year, the chinese GDP had about 9% growth, a little bit slower than 9.5% growth of last year. The chinese curreny RenMingBi has been stood firm and risen against the US dollar during these asia currency crisis, China bank has some difficulties to hold RenMingBi at current level and prevent RenMingBI further rising due to their incressing huge trading surplus and continuing international investing money pouring into the chinese market, four days ago, RenMingBi rates broke through the upper resistant level (8.283:1, China bank did not want see this line broke through but they failed to pretect it) against US dollar and continued rising. The ShengZheng stock market has risen from in the middle of 3000's to 4600's in recent three months, the reason why you should keep your red chips is simply because China reduced their mortgage rates by average 2~3% one month ago, according my experience, we will see chinese economy overheating in 1 or 1.5 years again, you will not surprise to see chinese stock market will double or triple in two years, just like chinese stock market index incressed 5 times during 1994-1996.
Happy Investing
Gordon Shen |
