clarifying some points, page-7

Thanks again Major for the insights.

Some interesting feedback from GSJBW's site visits to Chinese coys this week, which I'll use to respond to your comment:

"If growth in China can maintain 7-8% for longer than a year if the rest of the globe goes into recession, now looking likely, then I will truly believe in miracles."

- Chinese metal industry contacts comfortable GDP growth of around 9.5% in 2009
- "Olympic effect" considerable more severe than anticipated but greatly exacerabated by liquidity /credit crisis.
- hard to get a clean read under post Dec 08 (October data influenced by Golden Week holiday)
- no change to govt policy of urbanisation
- rebuilding of Sichuan (post earthquake) and strong development policy in China's NE will be key driver of raw materials demand 2009
- govt to continue infrastructure projects (particular rail)
- unanimous optimism that rebound will occur, but not a immediate phenomenon Q42008 but rather 1H2009.

IMO current market action has nothing to do with LT picture but rather fear, huge redemption rates and no willing buyers. We'll see mid next year if the above transpires.

Cheers
Denial