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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (53352)	9/14/2004 12:08:10 PM
From: RealMuLan	Respond to of 74559

an interesting article about FDI to China -- "Round-Tripping to China" By Alex Erskine Published 09/13/2004 "When it comes to China's Foreign Direct Investment (FDI), the reality may be more awesome than the myths. Especially over the past decade, the reported inflows of FDI into China have stood out while other destination countries have faced more difficult times. ... If "round-tripping" were deducted, the stock of "genuine" FDI might amount to only 5 perceent of Chinese GDP valued at PPP exchange rates, and possibly less. Thus, a sustained high level of "genuine" FDI inflows lies ahead as China continues to globalise and the economy grows and regulations improve. At the same time, "round-tripping" FDI inflows can be expected to decline. At present the large Californian pension fund manager CalPERS restricts its overseas asset allocations to qualified markets, and China does not qualify. Though this directly affects portfolio investment in China, it seems clear that improved investor protection in China -- which might attract CalPERS to lift its restrictions, would also serve to encourage domestic Chinese capital to remain for investment at home" techcentralstation.com