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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: ---------- who wrote (1389)	3/12/1998 9:17:00 AM
From: BD	Read Replies (2) \| Respond to of 2951

Thought I would post this here also, I am getting tired of talking to myself <g> on the Champion Technology Thread. You may find this intresting. Sunday March 8 1998 From South China Morning Post Reformer Zhu faced with his toughest task K L Law THE guard changes. China takes another step down the reform path as Li Peng finishes his term as Premier and makes way for economic czar Zhu Rongji to take over. Just a few years ago, it would have been difficult to imagine a man like Mr Zhu becoming prime minister of China. Dubbed 'China's Gorbachev' in the early 1990s, Mr Zhu is, in fact, something much more. He symbolises the changes taking place. Mr Zhu has earned himself the title of 'Boss Zhu' after steering China through a series of dramatic economic changes. He has managed to pull off several miracles of economic management over the past several years. Cooling the overheated economy and taming inflation from 1993 is Mr Zhu's greatest success so far. Now he is confronted with his toughest task to date, and the world waits to see if he can pull another rabbit from his hat. Mr Zhu has to pilot China through its next major reforms. Although President Jiang Zemin outlined the framework of reform during last September's party congress, Mr Zhu has the task of implementing the reform. All eyes are on Mr Zhu as he tries to deal with problems like the value of the yuan, declining exports and foreign direct investment. He also has to cope with a state-owned industrial sector laden with rusty enterprises. His most immediate task is to clean up the banking sector. On the positive side - despite many opinions to the contrary - it is likely that the yuan will not be devalued this year. This bodes well for Hong Kong and the rest of Asia. We also see positive moves in the telecommunications, high-technology and infrastructure sectors. Deregulation of the telecom sector is already under way. Infrastructure spending will increase dramatically as the Government tries to find work for displaced state employees. For investors, these moves will present some long-term opportunities to make money. Infrastructure plays like Cheung Kong Infrastructure Holdings, China Overseas Land & Investment, and Shanghai Industrial Holdings will be active. In telecoms, Casil Telecom Holdings and Champion Technology Holdings will be profitable. Hong Kong itself will benefit and remain protected by China because we have an important position to play in the new reform policies. Capital will have to be raised, and Hong Kong is still the best market for this. A wide selection of corporates like technology counters Intel and Motorola, golf-club supplier Callaway Golf, Malaysian banks and Cathay Pacific Airways are all reporting poorer earnings. The darkest days of the crisis have passed, but the effect on corporate bottom lines is still to be felt . . . and discovered by investors. As a result, 12,000 and perhaps 11,000 will continue to elude the Hang Seng Index. In portfolio action, Indonesia continues to smoke, so we will keep ourselves heavily in cash. We add just a small holding in Champion Technology and increase our holding in Founder Hong Kong.