What I felt interesting in this discussion was the lack of reference to Overseas Chinese. Bill Clinton certainly was aware of them.
http://www.amazon.com/exec/obidos/tg/detail/-/0750641304/ref=lib_rd_ss/1 04-4779275-1646342?v=glance&vi=slide-show#reader-link They are able to put together trillion dollar deals in a very short time so these specific problems of China probably don't interest. My guess is that it would be in their interest to have the Chinese government have to reduce pension liabilities. Bill Ward On Wed, 30 Oct 2002 18:02:30 -0800 "Karen Watters Cole" <[EMAIL PROTECTED]> writes: > Keith wrote: We live in interesting times! > > Don't we though? So what do you guys think will happen in the > Japanese and > Chinese markets/economy when the US attacks Iraq? What about Wall > Street? > Will a New Year's timing make any difference? > > I found it unusual that the NYT had three separate articles about > Japan's > banking problems yesterday. One an OpEd piece and the other two > under > International. The OpEd piece largely asked the question if the > Bush > administration knew what is was doing pushing Japan to reform, as > in, be > careful what you wish for, and the other two explained and > complained about > the situation from different angles. > > Would Reform Ruin Japan? @ > http://www.nytimes.com/2002/10/29/opinion/29MURP.html > Japan's Sick Banking System Resists Therapy @ > http://www.nytimes.com/2002/10/29/business/worldbusiness/29BANK.html > Japan's Zombie Businesses Live On @ > http://www.nytimes.com/2002/10/29/business/worldbusiness/29ZOMB.html > > Here in the States we like to think that we remade Japan after > defeating her > 50 years ago, but we didn't really change the native bureaucracy > that much. > McArthur made significant changes, but the reforms were superficial > at the > middle management on down level. After we turned the country back > over to > them, the native bureaucrats reestablished their hold on getting > things done > at the local level. Patrick Smith made this point repeatedly in his > Japan: > A Reinterpretation, essentially debunking the Reischauer > 'Chrysanthemum > Club's' presentation of Japan to the post-war Allies. The more I > restudy > Japan as an adult 30+ years away from living there as a teenager, > the more I > agree. The Japanese adopted our institutional ideas but adapted it > to their > peculiar native practices, just as SE Asian Muslims practice a > different > sion of Islam than do Arab Muslims. Yet today too many seem > confused > that they aren't exactly like us in their application of an imported > idea. > You'd think that we'd have learned the lesson by now that not > everything we > do is golden, and not everyone will use democracy and 'free market > capitalism' the same way. > > All of this should be foremost on our minds as people are making > plans to > refashion the Middle East after initiating a war for liberation and > ignoring > what is happening in the Far East. > > I don't know how else to enlighten so many people who have not > traveled or > lived elsewhere so that they have the eyes, ears and head to see the > world > from other's perspectives. It's not just a matter of not speaking > other > languages, or learning more world history, or reading more > international > news. There is still a pervasive provincialism that we must > constantly > fight to minimize. Otherwise, we will not be prepared for the > consequences. > > Karen > > Keith wrote: Re your posting below, the FT today confirms (in its > own more > restrained way) the language that Howson uses to describe the > possibility of > buying Chinese "A shares" (". . . very, very hot ideologically . . . > very, > very hot commercially . . . and it's going to potentially have a > very, very > big impact on the capital markets.") Apparently China's head > Securities > Regulator, a Mr Zhou, outlined the plan to fund managers in > Singapore last > week, and this makes the prospect almost certain as soon as the > five-yearly > Communist Party Congress in Shanghai is out of the way. > Even apart from the possibility of portfolio investment in China, I > seem to > remember reading somewhere recently that foreign direct investment > (FDI) in > Chinese firms is now poised to overtake FDI in America. > We live in interesting times! > > From PBS Nightly Business Report. Comment? Speculation? Bets? - > KWC > 10/28/02: Stock Trading Has A Sinister Side In China @ > http://www.nightlybusiness.org/trnscrpt.htm#STORY3 > > SUSIE GHARIB: Buying stock in companies is a pretty easy process in > the > United States, but that's not true elsewhere in the world. Take > China, for > example. Noah Smith reports. > > NOAH SMITH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Twelve hundred > of > China's best companies are listed on its domestic stock markets. > But, > sorry, they're off limits to foreign investors. Shares in China's > listed > companies are divided into three main types. So-called A shares are > traded > on the open market but constitute less than a third of the total. > Almost > all the rest are held by the government in the form of state shares > and > legal person shares. The state shares cannot be sold even to > private > Chinese investors and none of them can be bought by foreigners. > > FRASER HOWIE, CHINA SECURITIES SPECIALIST: That has created a very > warped > marketplace and limits the effectiveness of the stock market, the > effectiveness in terms of allocating capital, of bringing market > discipline > to the listed companies themselves. And, also, it's now put the > government > in a very difficult position in that it's unable to raise more funds > off > its existing share holdings. > > SMITH: Beijing needs to raise money, in part to support billions of > dollars > in pension liabilities. And since China's entry last year in the > World > Trade Organization, pressure has been building to ease restrictions > on > foreign investment. In the past few months, several government > departments > have issued statements that show support for foreign investment in > listed > companies, but there hasn't been any official policy change. > Meanwhile, > reports in China's state press say that pilot deals are in the > works. > > NICHOLAS HOWSON, PAUL, WEISS, RIFKIND, WHARTON & GARRISON: Something > is up. > No one is sure exactly what is up, but my bet would be that within > the > next six months you will start to see experimental or ad hoc or > specific > approvals of disposals of state owned shares, legal person shares > to > foreign investors. > > SMITH: Such talk has China's more aggressive listed companies > looking for > ways to tap overseas money. We're talking with some foreign > investors, he > says, but right now we're limited to cooperating with foreign > companies on > product development. Foreign investment in listed Chinese companies > could > have a strong positive impact on issues like transparency and > corporate > governance. Currently, even poor performers are supported by their > state > owners and are shielded from shareholders concerns. > > HOWSON: It's very, very hot ideologically. It's very, very hot > commercially because it's going to dilute the state's interest and > it's > going to potentially have a very, very big impact on the capital > markets. > > SMITH: That's one reason test cases are expected before current > regulations > are changed. In the meantime, eager foreign investors and Chinese > listed > companies can only hope that Beijing sees the benefits of opening > its > markets to the world. Noah Smith, NIGHTLY BUSINESS REPORT, > Beijing. > > Outgoing Mail Scanned by NAV 2002 > > > > ________________________________________________________________ Sign Up for Juno Platinum Internet Access Today Only $9.95 per month! Visit www.juno.com
