Hi all,

Since was busy with other things, I should have sent this mail weeks ago since I added Paul and Andrew (yes the one most of you know) in the list.

This list has 24 people, most of them my friends, and I guess all of them care about investment. Paul is my uni friend studied in LSE, my old flatmate. I talked to him 3 weeks ago. He is a fund manager looking after HK companies. For I always say I don’t know any company in HK, he is a good advisor in the list ;)

I remember since 2 years ago, someone first told me about QDII and QFII, I am not sure whether I have mentioned in the list. If not, here are the definitions:

QDII - QUALIFIED DOMESTIC INSTITUTIONAL INVESTORS
QFII - QUALIFIED FOREIGN INSTITUTIONAL INVESTORS

Both are the weird by-products of Chinese currency control. Hence, Chinese cannot buy overseas stock.

As there are so much hot money inside China, QDII are allowed to invest overseas, last Friday, Chinese Gov lifted the control, and which implies there are possible $7-$9 bn dollars flowing into HK market. Well well… all you can read from the news these several days.

To be rational, QDII means Chinese Gov wants to diverse their local boiling to overseas market, and you know how crazy people queuing to open security account in China, and indirectly, their money is flowing into HK. QFII on the other hand is overseas money to flow into China. Reading the newspaper, even QDII limit is lifted, it is far from effective to stabilize the Chinese domestic market. I forgot when, Chinese market was also once very hot, and suddenly the bubble bursts and people left the stock market. However, seems this time, people is getting more irrational about that. My view would be same to yours, before 2008 Olympic, Chinese Gov won’t do something serious to stop the econ. If GDP over 13 is seen in this quarter, it is far too dangerous to hold this boiling market.

:P About my specialty (US market), yes, seems AMD news will break out tonight, about their Barcelona platform quad-core chips. Also, Yahoo and Microsoft merger talk is another interesting news recently. There are so many things happened. US is very volatile last week, and I still don’t believe nasdaq can be peak for more than 2 weeks…

Let’s see~

Eric