The Chinese youth have a long list of things they can't live without

Tony Sagami takes a closer look at the youth in China and where and what they are spending their money on. In this issue of Money and Markets, Mr. Sagami examines the spending habits of the Chinese youth and considers where the potential big places to spend are.

Jupiter, Fla., (PRWEB) February 14, 2008

Tony Sagami takes a closer look at the youth in China and where and what they are spending their money on. Mr. Sagami examines the spending habits of the Chinese youth and considers where the potential big places to spend are.

And the way China's young people will spend their money could boost a list of successful companies allowing their stocks to head towards the moon. The very first thing every Chinese youth acquires once they have the money is a cell phone. Remember, cell phones are not only a Chinese youth's lifeline to their friends; it is also the primary way they connect to the Internet.

Many American children love to play what are called massively multiplayer online role playing games (MMORPGs), which are Internet-based games that let them play people from all over the world. Many especially love a game called "World of Warcraft." It's the most popular Internet game in the world, and The 9 Limited has the exclusive rights to market/distribute it in China. It can be expected that a lot of kids over there will be lining up to play.

The Chinese love everything western, but they especially love eating out at a Pizza Hut or KFC. For many, it's as close as they'll ever get to the U.S. More than 50% of Yum's sales come from outside North America and its booming business in China is sending profits higher.

Also, the Chinese are very aware of designer labels, and some of the country's most popular luxury items are extremely expensive Louis Vuitton purses. While very few young Chinese girls will get enough money to pick up one of these handbags, plenty of working Chinese women will be more than happy to blow their bonuses on a shiny new purse.

It wasn't that long ago that travel restrictions prevented the Chinese from traveling around their own country. Recently however, the country's citizens could spend a lifetime visiting everything their own country has to offer. Lots of younger people will do just that. And while most Chinese can't afford to stay at a Hyatt, Marriott, or Ritz Carlton, they can afford to stay at a Home Inn, the Howard Johnson of China.

"However, the smart, ambitious Chinese youth, instead of spending their money on some consumer whim, will take their money and invest it in something that will pay them back hundreds, thousands, even millions of dollars down the road. English classes, the key to winning the career race in China, or better yet, gaining admission into an American university. New Oriental will be there to accommodate these aggressive students, and rake in the cash along the way," Mr. Sagami states.

To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?Chinese-Consumer-Spending-from-New-Year-Holiday-1

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 (http://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 http://www.moneyandmarkets.com.

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