Economy Analysis of Three Asian Countries: India, china and Japan.

1. Investment opportunity in asian countries

2. Agenda for the presentation World investment outlook. Analysis of the Japanese Securities market. Analysis of the Indian Securities market. Analysis of the Chinese securities market. External factors for Investment. Conclusion.

3. World

4. Public debt

5. Investment as % of GDP

6. Forex Reserves in Bn $

7. Disadvantage of huge forex reserves

8. Country risk rating

9. What makes India worst? External security risk Terrorist threat State level disputes the poor quality of physical infrastructure suffocating levels of bureaucracy, fragmented multi-party coalition

10. P/E Ratio of Different Countries

11. Japan( service driven economy)

12. GDP Growth rate-JAPAN

13. Current account variation

14. Industrial production % change

15. Exchange Rate over the years

16. Interest rate variation

17. Japanese stock market

18. Dividend yield of different sectors of Japan

20. Inflation rate variation

21. REASONS FOR DEFLATION The return of deflation for the first time since August 2006 had been expected but there is a fear that flat consumption and a stagnant job market will strengthen the possibility of a double-dip recession. In the 1990s, consumers stopped spending in the expectation that prices would fall further. Faced with falling profits, companies were forced to squeeze wages, shed jobs and cut production. This situation is again expected to come.

22. Balance of trade variation

25. India

26. Decline in volatility in output

27. FII limits in India

28. SEBI regulation on FII

29. Disadvantage of huge capital inflow?

30. Indian bond market

31. % share of Fii investment Market Capitalisation of FIIs holding (in NSE Listed Companies) to Total Market Capitalisation of NSE -12.5

32. Turnover in F & o segment

33. GROWTH Rate

34. Inflation rate variation

35. External debt variation

36. FII inflows over the years

37. FII Tax India

38. Contribution to GDP-CHINA

39. Chinese regulators. People’s bankof China China Securities Regulatory Commission (CSRC) State Administration of Foreign Exchange (SAFE) QFII-Qualified Foreign Institutional Investors

40. Chinese Securities Market The Shanghai Stock Exchange (SHSE)established on Dec19,1990 Shenzhen Stock Exchange (SZSE) on July 3, 1991. The Hongkong Stock Exchange goes back to 1871. .

41. QFII in China A QFII invest in (i) publicly listed shares on the Shanghai or Shenzhen Stock Exchange other than A shares; (ii) publicly traded treasury bonds, convertible bonds and corporate bonds; (iii) other financial instruments approved by CSRC. Regulation on QFII (i) An individual QFII may not hold more than 10% of the total outstanding shares of any single listed company (ii) in any single listed company, shares held by all QFIIs may not exceed 20% of the total outstanding shares of the listed company. 76 regd. QFII in China

42. Security Exchanges In China

43. QFII Route to China

44. China - Bank Loans Bank credit have sky rocketed . Lending's have shown an YOY growth of 30%. Higher Chances of default.

45. Investment and consumption Whether all investments are capable earning a profit to service there debt financing. Private consumption still weak Dependence on world economy.

46. Exchange change risk To protect their exporters. Reminbi devalued at par with dollars in the International market. Exchange rate risk is least incase of QFII in china.

47. China

48. SSE Composite variation over the years

49. Chinese Bond market

50. Variation of Inflation Rate over the years

51. HIGH INFLOW VIS-A-VIS LOW INFLATION Any country experiencing very rapid productivity growth in the tradable goods sector will see a rise in the real value of its exchange rate. central bank intervene net current account inflows should cause excess domestic monetary expansion Domestic prices must rise total appreciation in the past decade has been much less than the relative growth in productivity Rapid money growth should have pushed China into an inflationary spiral

52. But this not the Case in China…. Low inflation because of Financial repression the vast bulk of Chinese savings is in the form of bank deposits, and the deposit rate is set at extremely low levels. that monetary growth is channelled not into household demand but rather into the production of more goods. Financial repression leads to overinvestment, asset bubbles, and rising excess capacity.

53. Fixed Income Instruments Outstanding in Chinese Bond Market

54. Variation of govt. bond yield

55. China interest rate

56. Variation of current account

57. Variation of Balance of trade over the years

58. Investment in China

59. Conclusion