The Economy
Financial Reform
Foreign Incentives
The Currency

The Economy

Based on IMF’s forecast, China’s GDD is estimated to grow at 8.5% while global growth decelerates to 2.2% in 2009 due to the economic recession.

Being one of the most stable economies now in 2009, China’s economy has shown that it has strong foundations backed by strong financial institutions and quality investments.

China’s infrastructure system (transportation, communications) within the past 10 has dramatically modernized.

As the biochemical, manufacturing, metal, and environmental industries become more modernized; they exert a magnet attraction on foreign investments. Past success in these industrializes constantly generated high levels of financial yield.


Financial Reform
China’s Financial Market has become liberalized with the establishment of financial and legal systems, corporate governance and internal control mechanisms.

Since China’s entrance to the WTO, foreign banks and their assets have risen dramatically. Assets grew by 95% in 2006.

Reforms of credit cooperatives, securities companies, investment bank have taken place across China.

Actual utilization of FDI in China has drastically increased within the past 10 years


Foreign Incentives
Tax system implements incentives for foreign investors, exempting them from corporate tax for the first 2 years, and then reducing the rate to 15% from the original 25% after the initial grace period.

One stop service for foreign investors is provided by local governments and authority, guiding investors through the entire investment process.

Tariffs and VAT will be exempted with respect to import equipments for corporate use within the investment projects.


The Currency
Since the Asian Economic Crisis of the 90s, the Yuan has been pegged to the dollar. The falling dollar has the left the Yuan significantly undervalued, keeping Chinese exports cheap. Analysts say the Yuan is undervalued by at least 40% as of 2008.

With the Yuan bound for inevitable appreciation, investments will also be more valuable along with the revaluation.

The undervalued Yuan opens up opportunities for investors. With a revaluation, returns on investments and equity will increase in value. While demand may increase, it is primarily driven by local speculators and not foreign.