Friday, June 25, 2010

The Chinese Again!

This is so interesting! The Chinese don’t even have to do anything but hint at currency adjustments and world markets popped. The buying power of the Chinese population cannot be discounted. The net impact of a stronger Yuan means that more Chinese will have the ability to buy stuff abroad and what is interesting is that foreign goods are cheap to them because they have been marked up horribly in the mainland and even worse, they do not know what they are buying is the genuine stuff or not. Ironically, the Chinese are buying Chinese herbs and preparations in Macau because they do not trust the quality of their own stuff.

This lack of security advances up to the ultra-rich as well. They are trying their best to be under the radar screen as the rich are often targeted for this or that. Quite a few of them want to shift at least part of their assets away and in the past, Hong Kong was a choice destination but now, that may not be that viable. The mainland Chinese are making waves in Singapore’s property markets, in fact, they are buying assets all over Asia. I just came back from Vietnam where properties prices and yields have come down drastically. Navigating through all the political maze is amazing and very bad for health. I was visiting buildings and when I was at the sites, I knocked against the beam and suffered cuts and bruises to my right eye. Talk about job hazards!

The World Cup, school holidays and market uncertainty are finally cooling the markets! We need a reprieve as prices going up too fast too quickly can be detrimental. Again, I reiterate, stick to the fundamentals and you cannot go wrong. I hope all of you have more luck than Italy, last year’s winners. Always remember, last year’s winners can be tomorrow’s dogs.

I will up in Bangkok this weekend. In the meantime, have a great weekend!

Your Friend
Andy Ong