depth discussion, page-6

Shanghai up 3.5% today. A solid China is crucial to ESI.

There are lots of articles indicating China has now significantly cooled and is now on a "sustainable" course.

Below is an example of what is to come imo.

China wants to inject confidence into Greece. No-one else wants to touch Greece - but the Chinese are opportunists who will seize the moment.

"China's goal to make Greece its gateway in Europe"

http://www.theprovince.com/business/China+goal+make+Greece+gateway+Europe/3055560/story.html#ixzz0opaDdlPS

China has TOO much to lose by sitting by and watching GFC2 destroy them. China runs a MASSIVE surplus (China/Germany have cultures that save cash rather than borrow/ spend like the USA/Aust etc) that they can and WILL use to balance things that favour them. They have also last week signalled to the USA market that they will buy another USA bank if the opportunity arises.

All these events will stabilise the market imo. China NOW are King.

Its all about confidence and I reckon the party will continue....for a while anyway.

Re ESI - China falling over has always been the REAL risk. If China falls over the Ords will fall over indefinitely....and ESI is diluted major in future raisings. Sure the techs would eventually be sold to someone - but we will be diluted big time.

There is major cash on the sidelines ready to pounce as always. FMG on Fri and BHP/RIO today show the way. Happy China = Happy ASX = Happy ESI.

I reckon when the Tincom FS starts with $10 mill+ - there will be insto recognition Tincom ARE going to build this and others.

I firmly believe once the study starts feelers will be out to take ECT over. That initial $$$ Tincom commitment will sent messages to all the big fish in Oz/Brazil/Chindia etc that the techs are commercial and dangerous potential competitors to their existing businesses.

Im confident a bidding war will happen POST Tincom FS....for now they will talk.