GLG News Analyses of the following article:

China's Stimulus Will Work

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Published at: online.wsj.com

Over 5 million have lost jobs in China so far - and more job losses to come

November 28, 2008

Analysis by: GLG Expert Contributor

China has already lost 5 million jobs this autumn  and another 2 million migrant works are likely to lose their jobs in the next six months as more and more export processing factories shut down. Many of the jobs have also been lost in the construction sector.      The speed of the job losses has taken the government by surprise. On top of this, there are some 300,000 new graduastes looking for jobs who are unlikely to find work.    The government isd now putting forward plans to speed up infrastructure spending with the hopes of creating some 6 million news jobs.     This will take time to work through and in the meantime, the government will have to provide emergency relief for this army of unemployed migrant workers.   

Will pouring more concrete really help the Chinese economy ?

November 14, 2008

Analysis by: GLG Expert Contributor

China's strategy to boost growth by using the srategies that worked in 1997/98 will not help. China already has a huge over hang of empty office and industrial buildings.   There is no demand for the new airports planned and other transporation related projects. The new railways and subways planned have a long lead time so it will boost growth very soon. China will not create overseas demands for its export products simply by restoring export rebates and other subsidies. It needs to devalue again because many costs in China are too uncompetitive now.

Frank ChuPrincipalFjc Associates

Rail and electric sectors to benefit from China’s stimulus planC

November 14, 2008

China’s $586 billion stimulus package includes major infrastructure and social welfare spending in the next two years.  Among the priority projects in infrastructure development are high-speed rail and rural electric-grid fortification.  While the plan’s objective is to stimulate domestic consumption and assist industry, it should also provide business opportunities for offshore vendors who could offer unique equipment and technology services.