chinesepetti

Jinpan Int'l: A Small-Cap Chinese Infrastructure Play

GDP is USA is about 1% to negative 1% and the PE of blue chip DOW is still about 18; China GDP is more than 10% and the average PE of Shanghai blue chip composite(after 3 month decline) is about 19. Any school kids can tell me where the Value is!!! And do not forget this fast growth will be there for at least next 5 years.

Jinpan Int'l: A Small-Cap Chinese Infrastructure Play

I agree not to talk about petti.....

Jinpan Int'l: A Small-Cap Chinese Infrastructure Play

Sure Price control will not kill the inflation; however for a country like China with 1.2 billion people it is extremely important to use price control as a temporary measure in order to stablise the situation so other policies (for example revalue the currency and give tax benefit for R&D investment for improving productivity) can follow. This is very like what The Fed Ben did with a drastic rate reduction and flooding the market with liquidity so the credit situation can be stablised.

If you guys read Ken Fisher; you will understand the most effective measure to overcome inflation is investing in advanced technology to lift productivity, it will take time and lots of capital. China might be lucky in that regard because the internet which makes techonology transfer much easier and cheaper around the world.

At last we I agree to talk about Petti if you guys back off talking down about China; I welcome any constructive criticism on China though! I love to help you guys to understan what is really going on in China so we could make some serious money out of this great historical opportunity.

Jinpan Int'l: A Small-Cap Chinese Infrastructure Play

I understand most guys here like to make some money out of China; so first you must know;
1. the biggest problem in China at the moment is it's grwoth is too fast as it pushes up the inflation.
2. That is why the PBOC has hiked the rates six times to slow the economy.
3. The conclusion is the slower growth in China either before or after Olympic is exactly China needs and will be great for Chinese long term sustainable growing economy.

At last, remember during the USA reccesion 2000 and 2003; China's economy still grew more than 10 % back then. So if you know nothing about history then I would say " go away and stop playing the market and leave your money under your bed".