James Lewis

Can China Carry the Post-Olympic Torch?

I have a question Mr Jefferson:

You state a revalution of the Yuan would:
''And this would, over time, make assets in China extra ordinarily undervalued such as real estate''

Can you explain in short terms what you mean.

Are you stating that currently in USD/Euro etc terms Chinese Fixed Assets (real estate) are cheap due to the undervalued yuan.

Or are you stating, as the Yuan strengthens against world currencies that this will create a wealth mechanism (from increased domestic buying power) that will make Chinese Fixed Assets more affordable.

Very interested in your opinion.