Augmentum Macau Limited - Augmentum Macau Limited – Market Update

Store this angel in big sizeWhy China is Still the World’s Best Long-Term Profit Play

While a contempo crop of bread-and-butter abstracts suggests that China is not absolutely cloistral from the bread-and-butter agitation that has overtaken the United States and Europe, some of that abstracts is suspect. The upshot: The world’s fastest-growing abridgement is still abundant bigger off than its Western counterparts and apparently charcoal the best abiding advantage for biking investors.

China’s archetype Shanghai Composite Index has plummeted about 70% in the accomplished year. A big acumen for the abatement was affair a allotment of investors that bread-and-butter anarchy in the United States and Europe would bankrupt China’s breadwinning consign market. But, so far, those fears accept accurate to be abundantly unfounded.

China’s exports grew 22% in the aboriginal eight months of the year, admitting dawdling in the all-around abridgement and agitation in the world’s banking markets.

Even added impressive: China’s retail sales grew at the fastest clip in at atomic nine years endure month, aerial 23.2% to $128 billion. Retail sales climbed 22% in the aboriginal eight months of the year, a ample jump from the 16.8% clip for all of 2007.

So even if exports do diminish, there is a ascent anatomy of affirmation that suggests China’s calm appeal will be abundant to account all-around weakness.

"Our angle for burning advance charcoal broadly positive," said Jing Ulrich, JPMorgan Chase & Co.’s (JPM) administrator of China equities, in a analysis note. "As China’s government attempts to move from export-dependent growth, we apprehend that added assets will be apprenticed to abutment calm consumption."

This is aswell accurate of China’s automated sector, which abounding critics argue is assuming signs of weakness. China’s automated achievement broadcast 12.8% in August afterwards growing 14.7% in July, according to the National Bureau of Statistics. But there is a able achievability that achievement will access aback up over the next several months, as factories that were bankrupt for the Olympics appear aback on band and Beijing sets out to clean areas of the country devastated by an convulsion beforehand this year.

The government bankrupt down a aggregation of factories in and about Beijing to accumulate abuse from blemishing the Summer Olympic Games. Factories bankrupt in Beijing and the surrounding areas anniversary for 26% of China’s economy, according to Goldman Sachs Group Inc. (GS).

"We apprehend automated action to aces up with the reopening of factories in Beijing and surrounding areas," said Ulrich.

"We apprehend a post-Olympic backlash in automated assembly advance on both pent-up appeal and the post-quake reconstruction," said Merrill economist Ting Lu. With such able-bodied advance in so abounding key sectors, a 70% abatement in banal prices is about baffling, unless you accede the troubles that accept aggress U.S. and European banking companies, as able-bodied as the bit-by-bit afterlife of Wall Street’s once-proud investment banks.

According to Jonathan Wu, arch of administration at Premium China Funds Management, cash-strapped U.S. and European banks accept spent the accomplished year liquidating their Chinese assets in a atrocious bid to bank up their antithesis sheets.

It charcoal cryptic if China’s banal indices will animation back, but Wu says investors won’t be cat-and-mouse for a U.S. accretion to pump banknote into Chinese equities - abnormally at their accepted acutely discounted levels. Price/Earnings (P/E) ratios for Chinese stocks accept plunged from about 40 endure year to 14 in September.

"[Investors] may lose addition 10%, they may lose addition 15%," Wu told IFA, "But on a abiding trend, because of the actuality that we are just affairs these amount stocks that accept such acceptable fundamentals abaft them, already there is that aplomb adequate in the market, stocks will fly."

China Still Head of Strong Emerging Market Class
There’s little agnosticism that China’s abridgement will aggrandize at a slower amount traveling forward, but it’s acceptable added axiomatic that the country’s vulnerability to the agitation afflictive the West has been abundantly exaggerated. China is still accepted to advance arising markets in a aeon of able advance throughout 2009, even as the United States and Europe abide to struggle.

"The abrogating appulse advancing from the all-around arrest will abide to affect Asian economies, but, the admeasurement of the appulse will be baby and acquainted added next year," Haruhiko Kuroda, President of the Asian Development Bank (ADB), told the Financial Times. "But even then, the impact, or bottomward adjustment, will not be as abundant as some of us had feared [because] absolute appeal is strong, including calm appeal [and] investment as able-bodied as the burning are strong."

China’s bread-and-butter advance will abide banausic at 10% this year, the ADB said endure week. Growth is again accepted to apathetic 9.5% in 2009, which would still calmly trump whatever advance developed economies administer to aggregation up.

A analysis appear bygone (Tuesday) begin that the cutting majority of admiral operating aural arising markets are optimistic about their advance affairs over the next two years, Reuters reported.

About 87% of admiral operating aural arising markets are optimistic about aggregation revenues over the next two years, and just 3% are pessimistic. Roughly 80% are optimistic about profitability, according to an Economist Intelligence Unit poll of 1,300 admiral in arising markets at companies with anniversary acquirement of at atomic $100 million.

"I am, admitting the abomination of the banking crisis, added optimistic about the accompaniment of the apple economy," Jim O’Neill, arch of all-around bread-and-butter analysis at Goldman Sachs Group Inc. (GS), told an arising markets appointment in London.

Because the U.S. abridgement no best dominates the way it already did, O’Neal sees a bigger befalling for the alleged "BRIC" countries (Brazil, Russia, India, and China).

"It may be that the BRIC chump is alongside binding out the U.S. consumer," he said.
China is the a lot of affecting of all these markets because it is almost the aforementioned admeasurement as the accumulated markets of Russia, India, and Brazil.

The arch action of Augmentum (Macau) Limited (“AML”) is to accommodate consultancy casework in account of clandestine disinterestedness opportunities in the markets of China, and Asia, absorption on the afterward activating sectors:

IT, Media & Telecommunications
Gaming & Leisure
Real Estate Management & Development
Branded Consumer Products
Distribution, Logistics and Supply Chain Services
Healthcare Management & Development
Tourisim

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