Mark Mobius on China Growth
Mark Mobius was talking at the Reuters Mining and Steel Summit on the future growth of China and whether he believed it was sustainable or not. The emerging market expert said while China will continue at high growth levels and it will be sustainable, it won't be able to continue at double-digit growth levels, but will probably continue on some time in higher single-digit growth.
This ensures raw material demand will continue to be high based on China alone, according to Mobius, and I would add it shows the long-term demand cycle we're in when taking into account all emerging nations, and to a lesser degree, developing nations as well, who will benefit from selling commodities.
Contrary to the idea China will be tightening up, Mobius looks at them continuing to to pursue raw materials no matter what they do with their currency. Taking into account Chinese concerns over economic conditions in the United States and the rest of the West, and you can see they know exports are going to take a long time to rebound, making their internal needs and domestic projects as important as ever. This doesn't mean there won't be decent exports, just that they'll take time to build up to pre-recession levels.
Some of the larger and safer emerging market investments Mobius mentioned as good plays were Compania de Minas Buenaventura SA (NYSE:BVN), Vale (NYSE:VALE) and PetroChina Company Limited (NYSE:PTR).
Mark Mobius on China Growth
Showing posts with label Emerging Market Infrastructure. Show all posts
Showing posts with label Emerging Market Infrastructure. Show all posts
Tuesday, March 16, 2010
Monday, March 8, 2010
Coals Future Looks Great
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Monday, November 10, 2008
China to Offer Stimulus Package of $585 Billion over Next Two Years
While China will continue to grow at a rate enviable by most other nations, it has decided to offer their own version of a stimulus package in their own country worth over $585 billion.
China's growth is estimated to be at about 8.5 percent next year, down by 3 percent from last year.
Most of the package will target ten key areas in the country, and will focus on "transportation, rural infrastructure, low-income housing, electricity and water. Some of the funds will also be used to build up areas ravaged from natural disasters, particularly the May earthquake in the Sichuan province."
This is being done in an effort to strengthen the domestic market, as the country has primarily relied on exports for the majority of their past growth. That is what is slowing down, so they're going to prop things up until exports start to perform strongly again, which could take a couple years.
In an effort to generate more liquidity in the markets, China is also removing commercial bank ceilings in order to loosen up credit for rurul areas, technological innovation, small business and industrial mergers and acquisitions.
Another area they're targeting is their value-added tax, which will dramatically cut back on business costs to the tune of about $17.5 billion.
China's growth is estimated to be at about 8.5 percent next year, down by 3 percent from last year.
Most of the package will target ten key areas in the country, and will focus on "transportation, rural infrastructure, low-income housing, electricity and water. Some of the funds will also be used to build up areas ravaged from natural disasters, particularly the May earthquake in the Sichuan province."
This is being done in an effort to strengthen the domestic market, as the country has primarily relied on exports for the majority of their past growth. That is what is slowing down, so they're going to prop things up until exports start to perform strongly again, which could take a couple years.
In an effort to generate more liquidity in the markets, China is also removing commercial bank ceilings in order to loosen up credit for rurul areas, technological innovation, small business and industrial mergers and acquisitions.
Another area they're targeting is their value-added tax, which will dramatically cut back on business costs to the tune of about $17.5 billion.
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