Major News and Events:
- The easing of China’s one-child policy has already created a frenzy of anticipation among households, businesses and the stock market for the expected baby boomlet. Shares of baby-formula producers and even piano makers jumped after news of the policy change came out late Friday. Tutoring companies’ shares rose on the assumption that urban families would expect their second children to produce the same academic excellence they demand from their first.
- Investor Jim Rogers believes “the most important economic event of the next 10 to 20 years is what happened in Beijing at its Third Plenary meeting” And it’s something he says has been largely ignored, notably by Western media. Rogers has begun buying Chinese stocks after being out of the marketplace since 2008.
- US direct investment into China between January and October rose 12.4% ($3.04 Bln). EU increased 22.3% ($6.4 Bln)
- China’s planned economic reforms are poised to reshape the competitive landscape, allowing private companies such as Alibaba Group Holding Ltd. to compete with state-owned banks and easing the one-child policy to bolster demand for products from Nestle SA (NESN) to General Motors Co. (GM) Plans to change the nation’s financial sector include a new registration system for initial public offerings and allowing qualified private investors to set up small-to-medium sized banks.
According to Eurasia Group, the share of internet users based in the US was 66% of the global population in 1996, by 2012 the US accounted for only 13%. China is the Number 1 user of the internet. India rapidly approaching the US as the Number 2 largest user.