[Marxism] Chinese capitalism and the 'bamboo network'
Paula_cerni at msn.com
Wed Nov 14 15:50:03 MST 2007
"China's decision to create a new investment corporation to manage its massive savings has triggered a great deal of speculation about where Beijing might actually put its capital to work.
"For investors, getting in ahead of this massive liquidity wave could reap handsome dividends, since the amount slated to be invested abroad by China is $200bn. That figure is roughly equivalent to the total capitalisation of Thailand's equity market and in excess of the market cap of such countries as Ireland, Portugal and the Philippines.
"Where the mainland decides to invest its capital is anyone's guess. Australian mines, US equities, African oil deposits, European banks top the list, although investors hoping to ride the China investment wave should think regionally. There is a very good chance the mainland will direct a significant share of its reserves towards Asia's most powerful yet invisible force - the "bamboo network".
"Think of the bamboo network as an extension of China. The network consists of hundreds of companies across Asia owned and managed by overseas Chinese entrepreneurs with extensive ties to their ancestral homeland. Many of these companies dominate the private sectors of Singapore, Thailand, Malaysia, Indonesia, Taiwan, Hong Kong, the Philippines and Vietnam.
Full article at http://www.ft.com/cms/s/0/67554d8a-920f-11dc-8981-0000779fd2ac.html
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