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To: Dwight E. Karlsen who wrote (9334)	11/22/1997 6:11:00 AM
From: KAD	Read Replies (1) \| Respond to of 97611

Dwight: Good perspectives on the Asian Markets but I should point out as far as India goes the Middle Class with strong disposable income is over 300 Million. That is more than the population of US (~250M), Indonesia (~170M), Brazil ('155M) - these are the succeeding populated countries after India. But India does have infrastructure problems as you have noted and here is the opportunity! KAD

To: Dwight E. Karlsen who wrote (9334)	11/22/1997 9:56:00 AM
From: ed	Read Replies (3) \| Respond to of 97611

You are right ,in China from the western point of view the average people are poor, but the real situation is not so. I remember when I visited China in 1992, I am very surprised at the price of goods over there. Example: My friend rented a three bed rooms one bath apartment from the organization he worked for(The government provid most people with apartments with very low monthly rent) , the monthly rent is 7 Yen or 0.85 USD per month, and with $10 USD 10 people had a very fancy dinner in a high level restaurant, and four waitresses stand on side to serve the guests all the time. With two yen(about 0.25USD) totally, my friend bought me two big bags of apples and orangies(around 15 pieces for each fruit).My friend with me got a serious cold and went to visit the local hospital, the charge is 0.5 yen (about 0.05 USD, 1 coin) with two bags of medicines. In pekin, with 0.5 yen you can travel to anywhere in the city with the subway. I visited China again in 1997, I am very surprised at the propersity of the cities I visited , i.e Shanghai, Pekin, Senzeng, Kwancho.Modern and high rise buildings are everywhere.If people do not tell you you are in China, you will think you are in Hong Kong. With 1000 yen (about 120 USD) of monthly income, you can have a very decent life in Pekin!! When I visited China in 1992, the principal of the university I visited told me that the buying power of 1 USD in US equals the buying power of 1 yen in China. But from my own study, the real situation is that the buying power of 5USD in US equals the buying power of 1 yen in China. Now , talking about PCS, China has about 1.2 billion of population according to official record, but since many population in the inland and mountain areas are never recorded, the real population is about 1.4 billion, that is about 25% of the world population. After years development of economy since 1978, about 100 million people in the coastal areas can now afford PCs, and lot of them can afford cars.With economy continuing being developed, the number will increase continuously.The annual growth rate of China's economy is about 9%. In China , most people is poor from western point of view (if you do not take the buying power of local currency into consideration), but the government is very rich( I remembered last month the Chinese president visited US, he placed an order of 3 billion USD to buy 30 commercial plans fom Boing during his visit, this is just very very small number of commercial jets China will buy in the years to come. China is currently building enormous number of airports across the whole country, so you may start to accumulate boing(BA)'s stock now) , with the modernization of the offices and government own factories going on across the nation, the Chinese government buys a lot of computers, and most of them are ordered from companies like HP, CPQ, IBM, and to the government money is not an issue, but the quality. For the average consumers, the sub $1000 and any high end lower than $2000 probably are good candidates in the Chinese market for now. But like I said, as times go by, things will change dramatically!!!!Cock Cola went to China in 1978, and in the first few years they can not sell much, but now I see Cock is everywhere, and Cock built the largest assembly and manufacturing plants in China. The same for Hamburgs,the largest MD restaurant in Pekin can serve more than 1200 people anytime, and market is still expanding quickly. To understand the real situation of China, you have to visit there by yourself !!!!!!!!!

To: Dwight E. Karlsen who wrote (9334)	11/22/1997 12:13:00 PM
From: Mohan Marette	Read Replies (4) \| Respond to of 97611

Off topic* motorbikes and stuff. Hi there DK 1.If you like motorbikes check this site out,it will take you to Royal Enfiled-bullet motorbikes made in India and now available in Canada. iaw.com It is an old-fashioned,simple,classical bike with a distinct sound. I plan to buy one next year and travel across India and China. 2.China & India In my modest opinion these two countries will be powerhouses in the next century and beyond.As you should know, civilizations go through cycles,ie they prosper and decline.These two countries had their days in the sun thousands of years ago and in recent times have been in decline.But they are now on a recovery mode and climbing, the next few centuries will be theirs.China will lead and India will be a close second, only because India started their recovery later than China. Some interesting facts. CHINA Purchasing power parity: According to a World Bank study if you measure a countrY'S economy by thier purchasing power in their own economy (as opposed to traditional comparison of measuring the economy against the dollar etc) China ranks as number one in the world.Yes that is correct,better than Japan and even USA and India following close behind. THIS IS WHAT ED WAS EXPLAINING IN HIS POST with his experience in China. Another study a couple of years ago (dont remember which one) was pointing out that each Chinese has a saving of $600.00, multiply that with one billion plus people, you can see the enormity of the savings that the Chinese has. Assets of Chinese expats. The overseas Chinese are deploying their vast amount of wealth into China,along with their technical skills they gained in the West. GDP growth: China as should know, is one of the fastest growing economies of the world. Doble digit growth for some 15 years and still growing at close to 10%. INDIA. 1 out of 6 computer engineers in the world are from India. India churns out some 40,000 engineers every year. Economy growing at 6-7% year. A growing middle class who earns $30,000 or more annually,now stands at 100 million to 300 million. A well managed micro and macro economic policies, ie current account defecit less than 3%, budget defecit less than 5%, a comfortable level of foreign exchange reserve. Like the Chinese, a wealthy expat. Indian population with over 300 billion in assets, deploying their assets in various ways into the Indian economy. etc etc. A well positioned computer industry which exports over $2 billion of its products overseas,and growing at 60% annually. Well,these are some of my thoughts, and I am sure American companies like COMPAQ will certainly benefit tremendously from these two countries in the future,as they are already well positioned to take advantage of the situation. Cheers and all the best. Ps: let me know what you think about the Royal Enfiled Bullet bikes.