Business Channel 2007-10-01&10-03, 持续向好--中国基金

（单词翻译）

Alright, leading the pack of morningstars list of best performing funds so far this year. Top performing fund Aim China A. Astonishing 85 percent gain so far this year, also posting impressive returns and in the top 15, the Oberweis China opportunities fund, OBCHX is the particular of that, one nearly 60 percent is the gain tagged on by that one in (20)07. Joining us, Jim Oberweis,editor of the Oberweis Report and portfolio¹ manager of that fund.

Alright. Jim, it’s a pleasure to have you with us. Now, China certainly this year although extremely volatile², has seemed to be a tide that lifts all boats, is that the way to look at it?

That certainly is one way to look at it. I think the real question is what’s gonna happen next year. And next year is gonna be I think a game of math not momentum³. And you are really going to have to, really focusing on disciplines and our investment styles are looking at earnings⁴ and cash flow in relation to prices you are paying for stocks, we are really hunkering down right now, make sure our portfolio is adequately suited to that kind of strategy.

And when you buy... when we are talking China again there is always this confusion, are you…how much are you able to buy in China itself or you are pretty much playing this through Hong Kong

Right, well, you could certainly utilize⁵ a brokerage firm’s quota⁶ to be able to buy in the local markets. The problem right now, I think, is the local markets are so overvalued, because…for the internal retail⁷ Chinese investors⁹ it is really about the only place where they can go. So the valuations on the Shanghai listed stocks have really been inflated¹¹. We can buy a lot of the same types of companies on the Hong Kong and Singapore exchanges, and valuations are literally¹² half of what we had to pay if we were restricted to a Shanghai.

They are restricted share markets, and this is interesting. So the restricted share market is badly inflated, is that because it is a rigged game?

Well, I don’t know so much of a rigged game, but think about it. If you are a retail Chinese investor⁸ and you can. (it’s the only place you can buy)it’s the only place you can go. Exactly!

Oh, wow! I did not know that! OK, no wonder that market is so weird¹³

And that’s changing. Yeah! And that’s changing. The government is taking steps to let them invest in funds they can invest in Hong Kong and Singapore right now. It is a really small dollar amount. But as that changes. That's gonna inflate¹⁰ Hong Kong and it’s gonna depress Shanghai. I think it will go the course next year.

You like China. Are you worried at all? there have been a lot of reports recently worrisome reports about inflation rekindled¹⁴ in China. Is that garnered¹⁵ on your radar¹⁶?

It, there's no question about it. However, you still have, I think, very strong economic growth. We have to look at all those factors when we are making investment decisions. I think, right now, if I can have the wind in my back, and I can have the economic growth that we are seeing, even in the face of somewhat higher inflation. I’ll take it. Assuming I can find individual opportunities that are still relatively¹⁷ inexpensive in relation to growth rates and we are still finding some of those.

Alright! Jim, thank you very much as always we appreciate it.

Notes:

rigged: viciously controled and interfered