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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (23388)	10/2/2007 12:26:04 AM
From: elmatador	Respond to of 217860

They'll be talking about what to do once the Sovereign Funds come buying everything... "...pretty soon the chinese and Indians will run away with the rich guys holidays, nice houses cars and education of their children. And the young Chinese and Indian boys will take the daughters of the rich guys because women love men with money!" Message 23808081 They are coming to buy everything!

To: Arran Yuan who wrote (23388)	10/2/2007 12:32:27 AM
From: elmatador	Respond to of 217860

A word of caution on sovereign-wealth funds They need to be transparent, says European Central Bank chief Tuesday October 2, 2007 By LOONG TSE MIN PETALING JAYA: Just as one of Asia’s largest state owned investment agencies began operations with US$200bil under management on Saturday, European Central Bank (ECB) president Jean-Claude Trichet cautioned that the global economy may suffer if sovereign-wealth funds were not transparent. On that day, China Investment Corp, which is under the direct supervision of China’s cabinet, commenced operations as the largest state-owned investment agency in Asia. Bloomberg quoted Trichet as saying at the G-7 meeting in Salzburg, Austria on Saturday, that sovereign funds were “becoming an issue, which could hamper global prosperity if we don’t solve it”. He recommended “informal meditation” on the issue, the newswire reported. Jean-Claude Trichet “There is a case for meditation when you are in front of entities that aren’t guiding themselves on free decentralised decision-making,” he said, adding, “We are, in the ECB, decisively in favour of the free circulation of capital. That has to be considered fundamental.” RAM Holdings Bhd group chief economist Dr Yeah Kim Leng told StarBiz that if transparency concerns grew, many countries might enact barriers to sovereign funds. “But if the investments of sovereign funds are purely on a commercial basis (rather than for strategic national interest), there should not be a backlash,” Yeah said. Should a backlash occur in developed economies, these new wealth funds would likely approach emerging markets such as Asia, he said. “As long as the shareholdings are small, they should be treated similar to other types of foreign inward investments such as hedge funds or private equity funds,” he said. Yeah is strongly in favour of the entry of sovereign funds into regional markets. “In sectors such as infrastructure development where there are tremendous financial needs, these funds would be put to more productive use than in past types of investments,” he said, citing China’s investment in the second Penang bridge project and Middle Eastern funds’ entry into Johor’s Iskandar Development Region. Citi Asia-Pacific economics and market analysis director Dr Chua Hak Bin referred StarBiz to previous Citigroup Global Markets Inc reports. In a report dated June 7, Citigroup said a new trend was emerging for Asia’s investment of its gigantic foreign exchange reserves. “These are not new (fund) flows. The new investment companies will simply take over assets already invested overseas. But the new investment strategies could significantly impact on the global financial markets.” The report said the combined portfolio of state investment agencies in China, South Korea, Malaysia and Indonesia could easily reach US$400bil to US$500bil within two to three years. Areca Capital Sdn Bhd chief executive officer Danny Wong, a fund manager, agreed that it was “nothing new” in such funds investing overseas, citing Singapore’s Temasek Holdings and Calpers of the US. “What is quite disturbing to some as these funds have grown big is that they are not listed and so did not reveal much to the public,” he said. Wong foresees certain countries enacting laws requiring transparency in the transactions by sovereign funds, particularly in their ultimate holdings.