Hot money pouring into the Greater China concept

--long-term investment opportunities in mainland China and Hong Kong this reporter Lindfing hot money recently continued to pour into Asia, driving the Greater China market, China and Taiwan three stock markets rose, the HSI and Shanghai Composite Index rose by 26.35% and 10.32% respectively since April 1. 　　It is widely accepted that in the three markets of Greater China, the mainland and Hong Kong are expected to perform better and the mainland has a great opportunity to become the best performing market in Asia. Although the mainland stock market is one of the world's most volatile markets, it is expected that China's economic growth this year will be between 6% and 7%, among the Asian region. 　　Citigroup's latest report said last week's inflows of funds into Asian offshore funds doubled to $1.6 billion a week, most benefiting from Chinese ETFs (ETFs), which last week accounted for 60% of the total inflows of funds into Asian funds, well above 19% per cent 6 weeks ago. Fundsupermart.com yesterday reported that the company is the most bullish on the mainland stock market this year, and the least bullish on Taiwan. But for the region, the Greater China region, including mainland China, Hong Kong and Taiwan have the chance to outperform other Asian markets this year, and the mainland will be the best performing market in Asia, and the company is looking at the four main reasons for the region: the mainland's personal consumption is strong first, domestic demand in the mainland continues to grow and domestic consumption also has a considerable resilience. 　　Since 2007, retail sales (indicators reflecting private consumption) have maintained a cumulative year-on-year growth of over 15% per cent. In addition to the retail sales figures, the income passenger kilometer (RPK) is another indicator that reflects private consumption. During the period from April to September last year, the rpk of international and domestic routes continued to decline over the same period last year. 　　However, since last October, the rpk of Air China and Chinese Eastern Airlines have resumed year-on-year positive growth, reflecting a considerable resilience to private consumption in the mainland, despite the bleak external demand outlook. The renminbi's resilience continued, and mainland companies accounted for more than 50% per cent of the Hang Seng Index, and many examples also show that Hong Kong is closely linked to the mainland economy. 　　For example, in the wake of the financial tsunami, the economy has benefited from the huge demand of the mainland and has not been so severely affected, and the company expects the unemployment rate for this financial crisis to be lower than the 8.6% of the 2003 SARS outbreak. Moreover, as an emerging market, the domestic market and export business of the mainland are dependent on the support of the second industry. 　　In the past 1 years, as the cost of raw materials plummeted, the marginal profits of mainland enterprises will be expected to increase, such as the April producer price index (PPI) fell 6.6% from the same period last year, a decline of 6% in March, the fifth consecutive month of decline. Meanwhile, the dollar is strong and the renminbi remains strong. The financial tsunami dragged down global stock and bond prices, while the dollar was on the counter, but fundsupermart.com that while the renminbi could depreciate by several percentage points against the dollar this year, the company's currency's resilience is expected to continueTo。 The panic sale is hard to reproduce. Finally, the valuations of the mainland stock market were 11.3 and 10.1 times times respectively for the current and the next two years, as of April 29 this year, and the Hong Kong stock market has been valued at 13.6 and 12.6 times times respectively in this and the next two years, while in Taiwan, which has a relatively bleak Valuations for the next two years are 35.8 times times and 16.2 times times respectively. 　　Therefore, among these three markets, fundsupermart.com is more bullish on mainland China and Hong Kong. Fundsupermart.com, Assistant research manager Ye Coxian, said the panic sale, like last October, would be hard to reproduce as the credit crunch eased. As far as the present valuation is concerned, there is a long term investment opportunity in the mainland and the Hong Kong market.