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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (22473)	1/31/2005 10:50:04 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

PolymerMom on the FOOL writes about Chinese Banks here goes..... From the Matthews web site (http://www.matthewsfunds.com/weekly_update.cfm#marketperformance): In the absolute, China produced GDP worth 13.65 trillion yuan, or just over $1.6 trillion in U.S. dollar terms, based on current exchange rates. On a per capita basis, this is equivalent to an average income of $1,250 per Chinese citizen; by comparison, U.S. GDP per capita is estimated to be $40,000 at the end of 2004. This looks like a big adjustment to be competitive. Of course its a two-way street and their income could increase, as well. Here's a link to likely changes in the Chinese financial landscape. Accounting rules will change over the next three year... matthewsfunds.com The big change isn't regulatory but the partial privatization via IPOs of the four major Chinese banks. Rings true with what Yiwu and others have been saying. If this is the case, they are not ready to revalue the yuan/renminbi quite yet.