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Thinking about WHAT we want!
Okay, we even have contributors here who recommends studying the charts, sounds like a day-trader to me, a frightening thought!|
Take a step back, think about WHAT we want to do before thinking about HOW we want to do it. I don’t think we want to set up a new investment bank or, worse still, send hordes of day-traders to various exchanges.
What we want: :)
• We want to diversify and improve on the RoI;
• We want to be a “trust fund” for the the reserves which belong to the Chinese people;
• There are a lot of investment banks and fund managers who would do it for us, some of these companies have been around for almost a century, we want to harness the experience, know-how and talent of these companies.
• We want them to do the work for China, they are good at it, and to let them compete for the management of slices of up to USD400 billions;
• We want full product disclosures from them and we want them to give the “trust” the most realistic returns possible, or they will miss out.
What we need to do: :)
• We will do full due diligence and check up on these investment banks and fund managers;
• We will need to spread the investments and risks by currencies (trade-weighted); by markets; and by instrument types;
• We will need to re-balance our portfolios periodically along those lines;
• We will need to retain oversight and control over our all the portoflios, therefore, inter alia, daily reports and mark-to-market are mandatory requirements
• We will need responsible and experienced fund managers with long-term, strategic views.
What we don’t want:
• We don’t want to be a disruptive force on any stock exchanges and we certainly don’t want to drive companies to bankruptcies, they can do that very well without us;
• We don’t want to become an investment bank; we don’t want to be a hedge fund; and we are not employing hordes of speculative day-traders studying charts and racing guides.
Hello, calling wholesale bankers and fund managers …
[ Last edited by cestmoi at 2007-3-13 04:21 PM ]