Investment in hard times: the rise of Asia has become the preferred stock.

<P> NEEDHAM, Massachusetts, with fund managers on the prospects for global economic growth, more and more pessimistic attitude held, they will be more eyes on emerging markets in Asia, to seek a better performance. .A recent survey shows that emerging markets and Asia has become the most popular independent financial adviser for investment, 66% of the investment adviser recommends that customers should increase investment in emerging markets, while 55% of the proposed customers to increase investment in Asia .. .</ P> <P> investment in Asian equities are ten reasons </ P> <P> investment advisory director of JP Morgan Asset Management Cuiyong Chang has written that the top ten reasons for investing in Asian equities, including: </ P> <P> .First, Asia has strong fundamentals, the formation of adequate justifications for strategic long-term investment. .In good demographics, rising wages and generous support of savings in Asia over the next 10 years, GDP growth prospects for beauty. .</ P> <P> Second, both the ability and through the strengthening of the Asian economic investment and consumption, and contend the impact of weak demand in OECD countries; also available in these advanced economies, demand rebounded significantly in terms of the export sector benefit .. .</ P> <P> Third, the rapid growth in Asia's economic system, many are still considerable room to stimulate private consumption. .Compared to U.S. private consumption to GDP share of 70%, India accounts for only 56%, China is more, only 35%. .</ P> <P> Fourth, Asian consumers have relatively low debt, which means that similar regional growth should not be debt-reduction wave of the U.S. and Europe. .In the U.S., consumer debt to GDP ratio of 99%, the proportion of the UK and achieved 100%; while the proportion of China and India were 13% and 11%. .</ P> <P> Fifth, the Asian companies have relatively strong balance sheet. .Businesses in the region of the debt ratio from 60% during the Asian crisis, now down to 30%. .Return on equity has reached the normal cycle of low levels of 2009, the region is about 10%. .Increase in the future return on equity valuations will be driven to become more attractive. .</ P> <P> Sixth, the government has a large foreign exchange reserves in Asia, and the relative balance of the financial situation, have the ability to introduce, where necessary, the second or third round of stimulus. .The other hand, a huge deficit in the American government is inevitably stretched in the fight against recession. .</ P> <P> the seven themes of investment in infrastructure in Asia will further benefit from the government stimulus spending. .Exports and private investment in the face of greatly reduced, Asian governments have launched more than 8,000 billion dollars worth of economic stimulus plan, which has been allocated a major part of the infrastructure project. .Long-term infrastructure needs of Asia are very strong, such as China and India's per capita electricity consumption will be only the United States were 16% and 4%. .</ P> <P> the eight political risk in Asia is declining, the local councils over the past 10 years has been significantly improved. .The recent elections in Indonesia and India, were recorded satisfactory results to investors, will also help the new government to deepen the local political and economic reforms. .See also strengthen regional cooperation, improve cross-strait relations and Taiwan is the best example. .</ P> <P>, nine, the final product trade in Asia is expected to increase. .Ever seen, both intra-regional trade in Asia to assemble outside the products exported to the necessary parts and materials based. .With more vigorous domestic demand, trade between Asian countries, there will be more largely by domestic end product promotion. .</ P> <P> the ten Asian markets (excluding Japan) share of the global stock market index, from 3% in 2003 to June 2009 a large 11.5%. .Global investment portfolio in order to avoid the potential behind the rally in Asia, but also bound to increase the proportion of distribution of investment in Asia to promote more capital inflows into the region. .</ P> <P> Asian reproduce the brilliant </ P> <P> Asia's growth momentum of emerging economies, even more than in 2001 before slowing U.S. economic growth much stronger. .U.S. dollar exchange rate as of now, many Asian emerging economies, economies of scale in the past 6 to 7 years more than doubled. .Emerging Asian economies the total size of 7 trillion dollars, nearly double-digit growth. .More importantly, the two major engine for economic growth in Asia - China and India in the medium term economic prospects remain strong. .</ P> <P> this growth due to the relaxation of supply-side policies and the lifting of the ban, and the process of industrialization and rapid urban development; productivity continued to grow strongly; corporate earnings remain strong, corporate balance sheets the best period in history .; consumers have very strong balance sheet, liabilities are limited; the Chinese government financial position, with the necessary, adequate control room; the huge trade surplus and foreign exchange reserves, the Chinese economy can better withstand external .impact. .</ P> <P> continue to invest in Asian assets </ P> <P> no doubt that subprime credit crisis, the downside risks to U.S. economic growth was significantly increased. .At the same time, higher than expected inflation data in August also contributed to China's further risk control measures introduced. .However, despite the short-term uncertainties, but the overall trend of economic recovery in Asia has not changed. .Although U.S. economic growth in the future may face the challenge of several years, but improvement in their fundamentals and strong support, the Chinese and other Asian emerging economies are still expected to maintain economic growth. .</ P> <P> because of fundamental differences, we believe that investing in Asian assets (including stock and foreign exchange) is a strategic point of view has not changed. .We believe that in the current decade, thanks to the strong performance of domestic asset prices and currency appreciation, China and other Asian emerging economies will usher in the improvement of living standards and wealth accumulation. .We continue to like have a basket of Asian currencies in our global economy, the top ten research team proposed transactions, non-deliverable forward contracts through the biennial to short dollar / yuan listed in the ninth. .(Wang Yamin Sun Shanshan compilation) </ P> <P> </ P>.