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

To: Beiming Wang who wrote (2556)	11/11/1998 5:25:00 PM
From: Tom	Respond to of 2951

Sure.

To: Beiming Wang who wrote (2556)	11/12/1998 5:42:00 PM
From: Tom	Read Replies (1) \| Respond to of 2951

Beiming, Re-thinking your question on U.S. funds returning to HK... U.S. dollar investment returning to Hong Kong, as well as SEAsia, may have as much to do with diversification out of USD-based assets as it does with any notions of a near-term regional recovery. Too, under the current circumstances, recent evidence of economic stability may be more important than recovery for those moving monies into the region. ----- Consider the following: 1) the possibility for a strengthening in the exchange rate of the Thai baht and that nation's recent economic efforts; 2) the stability of the HK dollar and the fact that any moves on the renminbi remain in the distance; 3) the good regard many have for Singapore's economic management and the Sing dollar (Young Mr. Lee did a good job in '85, and he's reported to be deeply involved in recovery efforts now.); 4) current asset and equities prices throughout the region. Not bad places to invest U.S. dollars in the event there is a realignment among the world's reserve currencies. If the USD is going to take a hit at the launch of the Euro-dollar, do I just sit tight and absorb the shock? Certainly not. With the installment date for the Euro rapidly approaching, evidence of a weakening in the U.S. economy and probabilities of interest rate cuts, what better time to place funds in East Asia? Something more to think about.