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Politics : Moderate Forum -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (7999)	3/11/2004 6:30:24 AM
From: GUSTAVE JAEGER	Respond to of 20773

"They Will Buy More" Financial Post China is booming. How can you benefit? To find the answer to that question, the Financial Post sat down this week with four of the world's most knowledgeable investment experts. Marc Faber, author of "Tomorrow's Gold -- Asia's Age of Discovery," editor of the Gloom, Boom and Doom Report and special advisor to Dynamic Mutual Funds was in Toronto. Joan Zheng, Greater China chief economist for J.P. Morgan, spoke to us from her office in Hong Kong. Chen Zhao, managing editor of Bank Credit Analyst Group's China Analyst was in Montreal. And Mark Mobius, managing director of Templeton Asset Management Ltd., joined us from Spain. The global teleconference was organized by Dynamic Mutual Funds and stickhandled by Levi Folk, an independent fund analyst. Below, our four experts give their views on China's rapidly industrializing economy and reveal how you can make the most of the situation. Q. What opportunities does China hold for an investor with a long-term perspective? Marc Faber: The Chinese economy is probably about 50% to 60% of the U.S. economy already and in many sectors of the economy, China is larger than the U.S. China produces more steel than the U.S. and Japan combined and they are still importing steel. The markets for motorcycles, refrigerators, TVs, VCRs, handset telephones is larger in China than in the U.S. So in terms of units of production and units of consumption, China is already a huge economy and such an economy, obviously with 1.2 billion people that is growing anywhere, who knows, 5%, 10% per annum trend-wise, offers investors all kinds of opportunities. I would also like to point out that as of today, if you went to a portfolio manager ... your portfolio would be benchmarked according to the Morgan Stanley world index. You would have 53% of your money in the United States but you would only have 8% in Japan and 3% to 3.4% in the rest of Asia, which would include Pakistan, India, China and those countries that have a combined population of 3.5 billion people. I don't think this adds up. I think people should have much less money in the United States, maybe only 20% of their money. I would have no money in the U.S. and 50% to 60% in Asia, ex Japan. [...] chinese-school.netfirms.com