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

To: Dayuhan who wrote (2077)	8/12/1998 11:40:00 PM
From: cardcounter	Read Replies (1) \| Respond to of 2951

Just some info. I got off the Deutsche Securities Teleconference Today on emerging markets... replayed off the bloomberg... If you're really interested, I could find their number or other contact info. for you tommorrow at work. Another point they threw out was that china is actually undergoing some deflationary pressures.. I don't remember the rest since I was mainly paying attention to their outlook on Russia..

To: Dayuhan who wrote (2077)	8/13/1998 8:39:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 2951

Steven, <<sidenote on china.... China is using a unofficial devaluation or a stealth devaluation in a very clever way. Chinese exports have some very generous rebates and trade credits attached...<< This is nothing new, but they have expanded it. Exporters in certain industries get a tax credit as a percentage of sales. Foreign owned exporters operating in the Special Economic Zones (Shenzhen as an example) get special tax rates, special breaks on real estate, and a large rebate for any expansions. The effective tax rate for most of these companies is less than 10%. (Compare that to Japan's 65%) I own two HK based exporting companies. Both continue to grow revs in this mess (50% & 18%). The tax and incentives give them excellent bottom line margins. In spite of this, the stock prices are down over 50% from their highs as investors run scared. If you are very interested, I can retrieve a post that details the tax structure before the latest revisions and some more recent updates. FWIW, Ron