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

To: ---------- who wrote (1569)	5/5/1998 10:15:00 PM
From: synchro	Read Replies (2) \| Respond to of 2951

Last week The Wall Street Journal (4/30/98 ed.) had an extra insert call "Global Investing" that focused soley on China. Very interesting. Sometimes I wonder why I still subscribe to a Dead Tree publication, but that series was worth the money. Of the seven or eight articles in the series, most interesting was the one about this woman laid off by the state factory in Shangyang and decided to open up a produce stand. She talked about how she learned to manage supply and demand of her products. My favorite quote: "At first I didn't understnad how a market economy works, now I understand it: Those who work harder...can live very well." Let's hope there are more of these budding entrepreneurs like her in China just waiting to break free. If that is the case, I am very heartened. Also interesting: a huge feature on the up-and-comers in the Chinese central government. Lots of young faces (well, 50 < x < 65) and technocrats, which may be a good sign; would have to see. May be wishful thinking...but still waiting for University of Chicago School of Economics alumni to show up in Chinese Leadership.

To: ---------- who wrote (1569)	5/12/1998 3:27:00 PM
From: Tom	Read Replies (2) \| Respond to of 2951

Doug: More to your #1569... where you indicate companies "will place additional shares to raise cash." For those not familiar with this, it has been characteristic of Chinese-owned corporates to do so. They have an historical aversion to debt, preferring instead to tap the local equities market. Though some do not consider this financing the best practice in all cases, their analysis is often too self-serving. New share issues, along with equity-splits, dilute share prices but also serve to provide and maintain participation in those stocks by local investors -- an important source of new capital. Not all will continue this way. There are some interesting arguments and proposals being made based upon the origins and types of financing SE East Asian companies will require, or will be offered, in the future. And just how well some will prosper with it...and without it.