Replies to post #112656 on Biotech Values

[oc631]

If I look at it's 10 largest public Corporations, they consist of banks and power companies. The top 10 companies are responsible of 75% of all the earnings of all 800 public companies. Their combined earnings are LESS than $75 Billion, so all the public companies together equate to less than $100 Billion Dollars.

I'm not sure what list you are looking at but your figure seems rather low. Telecommunications company China Mobile (CHL) had ttm EBITA of 36B.

What doesn't pass the smell test is (until recently) a decade of double digit GDP growth and an artificially low currency. Domestic hyper-inflation was mentioned recently on this board but IMO it will begin in the East. What will China do if higher interest rates don't subdue runaway inflation? One of the tools is to aggressively allow the yuan to adjust towards parity with the US dollar. It would appease the short sighted politicians in the states and battle Chinese inflation by reducing export growth. As China loosens the peg on the dollar, the rest of Asia (Japan being of most concern) will follow suit, and interest rates on US Treasuries will go through the roof to fill the gap in Asian purchasing.