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To: EL KABONG!!! who wrote (38492)	9/20/2003 1:18:56 PM
From: Seeker of Truth	Respond to of 74559

Hi Kerry, "I'm not so sure on those Chinese stocks." You've raised an extremely important point. You are so right to question the matter. "Once they no longer have a tremendous need for foreign investment." That time is so many decades away!! The poverty of China, let's say circa 1948 or circa the end of the Great Leap Forward was on an unimagineably enormous scale. The impoverishment of China was steadily going on during the century or so after the defeat of the Opium War. The great mass of people suffered, wept, died at early ages. There won't be any early end of the need of foreign capital to provide new jobs. A century from now, discouragements to foreign investments in China are theoretically possible. Now such discouragement would only be done by madmen like the rulers of North Korea. The present policy of China certainly is to let those profits from foreign investment (after normal tax paid by the corporations) "slip out the back door into the hands of foreigners." Witness the profits in Chinese stocks periodically taken by that Trinidadian citizen whom we all know, like and learn from. The real concern is transparency of the company reports. Naturally this is a concern everywhere. Finding out if the management is honest or not is always a major task. Unreasonably large compensation for the CEO is a tip off. There's a certain Canadian company, headquartered in Toronto where I live. I've met the son of the CEO and spoken at length with him and I've also had back and forth correspondence with the CEO as well as talks with the second in command. So I feel I know the management and I don't suspect them of anything deceitful. Consequently my largest investment is in that company. If I had the same degree of acquaintance with the management of some Chinese company I'd put even more money there because overall China has a brighter future of growth than Canada. But it's hard to get info about the management because we are so far away from the scene. That's the real difficulty with investment in China, same for Brazil or Turkey or any other distant land of potential where we don't know many people.