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  • Six Reasons To Buy China Soon [View article]
    I was living in China for quite a few years and I wouldn't touch Chinese equities with a broom. Rapidly ageing population (in 2020, there will be more pensioners than people under employment); the environmental damage is estimated to eat up 10% of its GDP; the huge currency reserves are a result of the government printing money and then buying foreign currencies to keep the Yuan low; increasingly civil unrest (51,000 incidents last year alone); banking sector is burdened with huge non-perperforming loans; statistics are notoriously unreliable and mostly fake (how do you collect GDP data from the authorities of 30 provinces which are not fully computerized, yet publish monthly stats on the 2nd day of the following month??); the central government is desperately trying to hold to its powers by spending huge amounts on censorship (ever heard of the "China Great Electronic Wall"?); 70% of the population live on less than USD 1,000 per year etc etc.

    Be careful before you invest. I was running a company with a few hundred people and I can assure you that what you read in your local newspapers does not reflect reality!
    Aug 14 21:16 pm |Rating: 0 0 |Link to Comment
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