View of Shanghai architecture from the BundThe financial turmoil that has gripped the world during the last 2 weeks cast a shadow on the future of many economies.
Until the major powers in Europe decided on a concerted action to take stakes in major banks (aka nationalise) and guarantee interbank loans over the weekend, and the indication that the US Treasury will follow suit, did the market respond with a vote of confidence on tuesday with biggest ever gains in Wall Street and Nikkei.
While all of these were happening, I was attending a health policy summit at Shanghai, China. I witnessed for myself the exuberant growth that has taken place and continuing to take place there. Compared to the mental image that I held in my mind only 2 years ago when I last visited Shanghai, major progress has been made. Even with financial turmoil, the Chinese economy is expected to grow some 9.4% this year, down from 11+% - but still 9.4%! China has also made a mark for itself holding the best ever olympics and recently put her own people in space. With domestic consumption growing (or shall we say exploding), the economy will no doubt be expanding consumption in oil to meet the ever increasing energy needs. I wonder why people say that the days of rising oil prices are over?!
China is the bright spark that is clearly visible in this storm. I suspect, much of the rich chinese money would have gone to take stakes in great companies battered by the financial meltdown in the western world. No doubt, the new era of global companies will soon emerge in China and the east.
There are opportunities of a lifetime (my lifetime :-) that need to be mined and I will certainly be looking out for them.
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