China Fireworks Blog
Welcome to the China Fireworks blog! This is where you'll get the latest updates on my book events and timely updates on the events shaping the investment landscape in China. I hope you find this feature valuable and that you'll continue to check in to get my view on what's happening now.
Tragedy Strikes
May 19, 2008
It's unbelievable to mass destruction that Asia has seen in the past month. A cyclone ravaged Myanmar and a week later a 7.8-magnitude earthquake shook the western Sichuan Province in China.
The death toll combined for these two natural disasters is in the tens of thousands. And many others were left homeless and injured.
In China, the government has acted swiftly, sending in troops and helicopters to aid in the relief efforts. The country's leaders have also accepted outside help, with neighbors like Taiwan, Russia and Japan sending in rescue teams. A stark difference to Myanmar's government, who blocked off foreign aid after a deadly cyclone struck the country.
In both natural disasters, many remain missing or still trapped beneath the rubble. My heart goes out to those harmed or affected by both of these natural disasters. And I would ask you to join me in prayer for the safety of the people still trapped underneath the rubble, and those participating in the rescue efforts.
Buy What China Buys
May 12, 2008
For a company to succeed in any market, there is one thing that it must have -- it must know its market and be able to provide goods and services that not only appeal to individuals but also become a must-have item. This is true of any company in any country.
And it's extremely true in China. Unless a company has a solid sense of what will catch on with Chinese consumers, it is destined to fail. Motorola was a company that did this right in China, but eventually lost a lot of market share as the cell phone market heated up.
As I discussed in last week's blog, the Chuppies are a huge factor in China's economic emergence. These middle-class consumers are what companies need to cater to. Motorola did this well with the RAZR -- it was wildly popular in China. But when it introdcued the KRZR, Motorola stumbled. It wasn't what the Chinese were looking for. It wasn't big and exciting enough.
What can we draw from Motorola's experience in China? We need to be buying what China desires -- focusing on companies that are supplying just what the Chinese people need and want. In China Fireworks, I dedicate a whole chapter to this subject because it is so important to building a successful China strategy.
In a store near you!
May 7, 2008
China Fireworks has officially hit the bookshelves. I visited a nearby Barnes & Noble on Monday just to make sure that China Fireworks was available. And sure enough, the bright red book cover stared back at me from the shelves of the investment section.
I'm very excited that you are finally able to pick up a copy of China Fireworks. Now you can join me on this incredible journey of investing in the incredible economic growth happening in China today. Be sure to pick your copy today!
A Slowing U.S. Economy
May 1, 2008
The Fed continued its rate slashing campaign this week, cutting the Fed Funds Rates and the Discount Rate by 0.25%. The Fed has been forced to keep up its monetary easing due to the economic weakness in the U.S.
Just yesterday, the government announced that the U.S. economy grew by a measly 0.6% in the first quarter of 2008. Much of the weakness in the economy can be attributed to consumer spending, since it's the main engine of U.S. economic growth. During the quarter, consumer spending only rose by 1%, down from 2.3% in 2007.
Consumers are worried and therefore aren't just shelling out their hard-earned money for just anything. The main things weighing heavily on consumers minds right now is high energy and food costs, rising unemployment rates and falling property values.
However, consumer spending overseas continues to grow. Just this week, global credit card processing giant MasterCard announced blow-out earnings due to strong overseas growth. In Asia alone, MasterCard's business grew by a whopping 27.8% last year.
I'm expecting to see Asian consumers spending even more of their money on hot items like high-quality food and travel since their salaries are finally supporting such luxuries. That's why I think Asia is clearly the place to be investing in right now, as its growth should continue unabated for years to come.
Find out what's truly driving the economic growth in China in my new book: China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World.
Great News for Chinese Stocks
April 29, 2008
It's been an interesting couple weeks for Chinese stocks. While I don't recommend investing directly in the Shanghai stocks market, there was an announcement from the Chinese government that is going to be beneficial for not only Shanghai-traded stocks but also stocks in Hong Kong and New York.
The Chinese government announced last week that it is lowering the stamp tax from 0.3% per trade to 0.1% per trade. Last year, the government tripled the stamp tax to curb speculative mania in Shanghai stocks.
But now the Mainland Chinese stock market bubble has deflating -- it's experienced a 50% correction since October -- and the Chinese government wants to help support the market again. So it took the first step by lowering the stamp tax. The response to the announcement was practically immediate, with the Shanghai stock market rallying 14% in the two days following the news.
This is a very bullish sign for Chinese investments. The strong performance in Mainland Chinese stocks will help the psychology in other Chinese stocks, especially now that Chinese stocks and ADRs in Hong Kong and New York are trading at attractive valuations again.
So there's no better time than now to start investing in China! One of the best ways to get started is to pick up a copy of my book: China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World. It will be available in stores next week, but if you're excited and want to grab a copy now, order online today.
Know the Ins and Outs of China Investing
April 24, 2008
Now is not the time to be nervous about investing in China. Sure, it's shrouded in mystery and can be a scary place to invest your hard-earned dollars. But the truth of the matter is that there are profitable opportunities around almost every corner -- if you know where to look and what to avoid.
Fund Managers and Wall Streeters will try to fill your heads with what they think is the best way to profit from China's incredible economic growth. But don't listen to them. They'll try to tell you that China's state-owned enterprises (SOEs) are the way to go because they were the dominant industrial force in the country for four decades.
Ignore them!
If they'd done their research or even visiting China just once, they'd know that the real driving force behind China's economic emergence is the Chinese people. By knowing this simple fact, you can set yourself apart from millions of investors who will dangerously invest their money in SOEs.
In my new book, China Fireworks, I discuss in-depth why you should basically avoid every SOE stock that you encounter. I also point out the exceptions to this rule. Plus, there are many other pitfalls to investing in China that can easily be avoided -- if you know what to watch out for. My book explains it all.
Learn about the dangers of investing in China and the best way to profit from the country's amazing growth in China Fireworks. Don't miss out one of the biggest wealth-building opportunities of our time. Order your copy today!
What I Can Do For You
April 15, 2008
The book has landed! Well, not quite yet. But it is finally in print and being shipped out to bookstores as we speak. I'm expecting it to actually hit the shelves of your local bookstores in the first week of May. Be sure to keep an eye out for it!
Before you actually get your hands on a copy of China Fireworks, I just wanted to take a couple minutes to give you a brief look where my insights into the great emerging economy of China come from.
I've been following the investment landscape in China for years. I visit the country regularly just to keep myself and subscribers to my Asia Edge and China Strategy services up to date on the economic environment and best places for investment. I even have a boots-on-the-ground research team in China that fills me in on the latest happenings in the country and in the companies that I recommend in my services.
I'm actually currently in Hong Kong right now, finishing up the InvestorPlace Media Kingdom of Jade and Pearl Investment Cruise of China. I've spent two weeks touring the country, and have brought back a boatload of research, insights and company updates.
Research like this is what helps me keep my subscribers informed about the best strategy for investing in China. And China Fireworks is a compilation of my research over the years and is the best place to start if you're looking for a successful China strategy.
My recent trip to China has renewed my optimism in Asia and the opportunities for investment there. I don't want you to miss out on the incredible profits to be made there by using the wrong strategy. So I hope that you pre-order or pick up a copy of China Fireworks, and start building your wealth through the China Miracle.
Always Start at the Beginning
March 11, 2008
For those of you who may not already be subscribers to my newsletters China Strategy and Asia Edge, I am founder and president of Absolute Return Capital Advisors LLC. -- a private money management firm.
I started my career as a trader and analyst for a global macro hedge fund, and was then hired by Goldman Sachs where I was heavily involved in international markets.
This formal training sparked an interest in me and I've been investing in and writing about international markets ever since. I was born in Taiwan and raised in Southern California. I am an American citizen, but was born to, ethnically, Chinese parents. Given this already international home life, I've spoken English and Chinese my whole life and have traveled to China and across Asia countless times. I'm fortunate that my cultural background and interests line up with my chosen profession.
After years of traveling, writing and investing in and around China, I decided to write China Fireworks so that I could share some of my base-line knowledge of what life and business is like in China. Without this knowledge, many investors are sure to fail. I don't want you to get in that kind of trouble, so I hope that you pick up a copy of my book and stay tuned for more blog updates to come.
A Moment of Thanks
March 6, 2008
Before I get too far into the particulars of China, investing or the book, I have to thank the team of people that helped make it all possible
First, I would like to thank the team at my money management company–Dr. Fei He, Lucia Caldera, Eric Leibowitz, Ada Lu, Frances Liu and Shao-feng Xu–for their hard work, support and research. I must thank my associates at Investorplace Media for helping me share my ideas and experience with thousands of investors through my investment newsletters. I also want to thank Dr. Andrew Kadar for early encouragement and guidance.
Finally, special thanks to HP Newquist, Chris Marett, and Shannon Miller, at InvestorPlace Media LLC., who helped with the direction, editing and production of China Fireworks.
Sponsored Links
