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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (38289)	3/7/1998 6:34:00 PM
From: Tony Wang	Read Replies (3) \| Respond to of 61433

Not true. China has a different economy model than their asian brethrens. They also entered the capitalist road late and are aware of the mistakes the Thai's and Malay's and the Indonesian's made. Moreover, they have a vast pool of labor resource that is unmatched by anyone in the world. They have huge foreign currency reserves, a surplus where the US has a deficit. The southeast asians does not have the economic wherewithal to address corruption and overborrowing that has occurred in the last 10 years. China, on the other hand is not completely open yet, and has learned from watching. That is why their stockmarket was up 100% and is only down 30% from the high. Lower price competition from Indonesia will not kill China it will kill Indonesia.

To: Thomas M. who wrote (38289)	3/8/1998 12:36:00 PM
From: Peter Yang	Read Replies (1) \| Respond to of 61433

<<China's economy is carried by its exports, which are mostly low quality, low price goods. China's SE Asian competitors just lowered their costs by 50% via currency devaluation. This is going to kill China if they don't devalue. The Yuan is slipping in the black market.>> The value of the Yuan is mostly a political issue rather than an economic one for Chinese government. The Currency market in China is not open. The exchange rate is determined by the government and free exchange is not allowed. The value increase or decrease of the Yuan will be determined by the Chinese government if the Chinese economy would benefit from the change either way. In other word, if you see value of the Yuan changes (either up or down), you know the Chinese government believes that's a good change, otherwise they'll do whatever they can to stop the change and they can do it.