New Issue of Money and Markets Reveals China's Economy Still Booming

Tony Sagami takes a closer look at China's economy and growth potential. In this issue of Money and Markets, Mr. Sagami examines the Chinese marketplace and population forecasts to determine just how large the new middle class of Chinese families could be.

Jupiter, Fla. (PRWEB) January 17, 2008 -- Tony Sagami takes a closer look at China's economy and growth potential. Mr. Sagami examines the Chinese marketplace and population forecasts to determine just how large the new middle class of Chinese families could be.

Asia is witnessing the largest human migration in the history of mankind. It started in the early 1980s when China made economic reforms and embraced free markets, putting itself on the path to capitalistic prosperity. Since then, waves of migrant workers have flowed to factories in Special Economic Zones (SEZs) and the large urban coastal cities.

In addition, estimates point to somewhere between 150 million and 200 million fortune seeking migrants moving into China's largest urban cities. For example, Shenzhen, a vibrant city across the border from Hong Kong, has grown from a small fishing town to a modern metropolis of 10 million residents in just two decades.

Meanwhile, Chongqing, a 31 million-resident province in southwest China, is so determined to become a modern city that it expects to increase its percentage of urban dwellers from 45% today to 70% by 2020. To achieve that goal, country dwellers must move into the city's urban areas at a rate of more than 500,000 a year.

China's factories are drawing more and more citizens from the interior countryside and, as large as those numbers are, the migration wave is expected to get bigger. This could happen because the Chinese government wills it to. Hou Yan, a senior official with the country's National Development and Reform Commission, said, "Our policy is not to delay the migration trend from rural areas."

According to the State of World Population Report 2007, China's urban population will grow from 560 million in 2005 to 910 million by 2030. That will shift the percentage of urban dwellers from 42% to 64%. Compare those numbers with 1980 when just 20% of the country's population lived in cities.

"And thanks to an economy that has grown at more than 10% for five years in a row, incomes are rapidly rising. That's creating an entire generation of new middle class families who can more easily afford homes," Mr. Sagami states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?China-Real-Estate-Booming-E-House-Holdings-Profiting-3

About TONY SAGAMI & MONEY AND MARKETS     

Tony Sagami, a veteran investment advisor and a leading expert on Asian markets, is the owner and founder of Harvest Advisors, an investment research and money management company. Mr. Sagami has been managing money for more than 20 years and is one of the early pioneers in the application of technical and quantitative analysis to mutual funds and stocks. He is a featured contributor to Weiss Research's daily e-letter, Money and Markets and monthly Safe Money Report as well as the editor of Asia Stock Alert.

Prior to establishing his own firm, Mr. Sagami was managing director at W.E. Donoghue & Co, serving additionally as the director of investment. During his successful career, he also held the position of account executive at Merrill Lynch.

Mr. Sagami's views on Asian markets, specifically Chinese investments, have been featured in publications such as The Wall Street Journal, Barron's, Kiplinger's, Smart Money, Business Week, New York Times, Washington Post, Investors Business Daily, Bloomberg, Financial Planning Times, Mutual FundsMagazine, Chicago Tribune, and the LA Times, as well as on CNBC and CNBC Asia.

Mr. Sagami holds a degree in economics from the University of Washington.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

# # #