Weekly Review

Interest Rate :

Against the market view, FED confirms that the extra low interest rate prevails. The Extra-low interest rate persists through out 2010.

CNY

China is under pressure of CNY appreciation. CNY reacts strongly against US's pitch. Trade war of small-scale is likely.

Inflation

The Chins's target of PPI of 3% in 2010, and expected CNY appreciation of 3%-5%. The HK inflation is likely to hit 6% this year. Real-Estate is likely go north as HK interest rate stay low (for how long ?)