The CEO of Woodsford Capital Management, Zhijian Wu is being interviewed by Economic Times in India. He gave his views on World equity market and currency market.

Woodsford Capital Management首席执行官最近接受印度经济时代电视台采访，并在采访中发表了自己关于世界经济的看法。

I have mentioned in a previous article in Business Times that China wants to slow down and China will slow down. Since then I have received some letters from investors asking for advice on how to hedge themselves against such a scenario. In this piece I would discuss some potential solutions.

I would recommend the investors to pay more attention to those developed markets who rely heavily on the growth story in China. The reason is that first it is not easy to short China directly on the capital market. Secondly China might still be fine if the economic growth slows from 10% to 8%. However a two percent loss of growth in some developed markets would make the dramatic change between growth and recession. I think some of the economies are particularly vulnerable to a slowdown in China. One of them is Australia.

Australia is one of the largest beneficiaries of China’s growth phenomenon. Thanks to its large reserve of natural resource, Australia had a commodity boom in the last few years. It is well reflected from the fact that the housing price in Australia only had a minor blip during the financial crisis, which is in sharp contrast to other G7 countries. Also Australia is one of the few developed countries that fared fairly well during the global financial crisis. Read the rest of this entry »

For the last two decades, China’s phenomenal growth has been one of the most critical changes in the world economy. Such a growth was given tags such as ‘wonder’ or ‘miracle’, and boosts the confidence of all Chinese people by the expectation that were China to continue to grow at such pace, it will be sooner rather than later for China to surpass Japan, and eventually USA to become the world’s leading economy.

The growth story is still under its way. For example, China registered one of the worlds’ best growth rates in the second quarter of 2010 (10.3%). Consider that most developed economies are still struggling in the mire of double dip or debt crisis, for such a big and export oriented economy as China to continue to post a double digit growth, it has to be outstanding if not astounding.

From time to time, however, people do pause and think, and start to raise the questions such as: is this what we want? We are living in the worlds’ fastest growing country, so what? Are we really happier than ten years ago? Read the rest of this entry »