Bubble Elimination and Opportunity Creation
Recently China has implemented credit tightening by increase the reserve ratio of bank.
It limits the bank on lending and immediately reduce the liquidity in the market.
The result of this policy has made a huge wave to the stock market. Global stock market has been sliding continuously for couples of days and i expect it will go down further.
I see the above situation is a positive move of china government. It consolidates china growth position in the coming years as to reduce the bubble creation.
Those speculators will be suffer on sudden tumble. But i believe the real investors who have holding power will be a winner at the end of the game.
For side liners, let's stand aside and see the show. When dust settles, it will be the best buying opportunity.
Remember that what's right isn't always popular and what's popular isn't always right.
Everybody makes mistakes; that's why they put erasers on pencils.
Even the parts that hurt, even the ones that are feeling disease right now.
It's alright to love what is in pain. More than alright, that's exactly where your love is needed the most.
So why not touch that part that hurts and smile at it, at yourself through it, and whisper:
''I love you.''
Yes. Even love comes with pain is still worthwhile cause it is love!
Chinese Community Subscription Quota Of AS1M Unit Trust Scheme Touches 80 Per Cent
AS of to-date, the response of AS1M is still relatively slow. as highlight in the link above, the total subscription is only 2.8 billion unit out of 10 billion which below 30% of te total fund.
Even the unit of sold unit for malay quota is not mentioned, it can be easily calculated.
50% allocation for Malay = Unknown
30% allocation for Chinese = 80% of 30% allocation = 2.4 Billion
15% allocation for India = 20% of 15% allocation = 0.3 billion
5% allocation for others ethnic groups = unknown.
from the above, we can estimate the maximum cap of the sold unit for malay quota is below 0.1 billion, which translate into less than 2% of malay quotation allocation.
Questions arising here,
1. Due to low subscription of Bumi allocation, will it affect the dividend payout? ( politic and economy are always mix together)
2. How PNB play the game by allocating attractive dvidend payout next year to attract more investor? (but Chinese ethnic will be most beneficial party, if more dividend is paid out)
3. If dividend payout is not good in next year, AS1M most likely will be "permanently" stagnant at current level. How PNB move?
4. Accordingly to various Amanah Saham fund, a lot of funds are set up solely for BUMI and its dividend payout is relatively attractive. If government wan to encourage for 1 Malaysia, shall it open for all races?
5. Consider to merge most of Amanah Saham Fund under 1 Malaysia fund and open equally for all races will be the best way to promote unity. how PNB think?
Deep Thought!