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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rmn who wrote (194)	12/27/1997 5:44:00 AM
From: Esvida	Respond to of 9980

All, There is news on AOL that the major opposition party in Japan has decided to dissolve and that decision was widely anticipated. Could anyone familiar with Japanese politics please shed some light on why this is happening? Given the success of the opposition party in Korea, it's a simple logic to think that the opposition in Japan may also do well in the near future. So, why it is dissolving itself? How does that decision impact the current government's efforts to reform the economy? Thanks. -Al

To: Rmn who wrote (194)	12/28/1997 6:26:00 PM
From: Rational	Read Replies (1) \| Respond to of 9980

Ramsey, There was an article by a Stanford professor posted here on Chinese system. True, the Chinese banks have a lot of bad loans (20-40%) but all those are internal. Thus, there will be no external pressure on yuan. But, the Chinese will see lower exports due to devaluation elsewhere. The Chinese are unlikely to respond to this by making a competitive devaluation because yuan is officially linked to HK$ and HK has succeeded in keeping her peg to the US$. Thus, in the long-run, Chinese will be better off keeping yuan as it is. Sankar