General Business Information

• According to Salomon Smith Barney, China’s stock market capitalization will surpass that of Japan’s by 2010.
  
  
  
  

• The ratio of China’s stock market capitalization to gross domestic product rose from less than one percent in 1990 to 51 percent in 2000. China GDP during this period rose more than 173 percent. In comparison, U.S. GDP grew 42 percent over the same period, and U.S. market capitalization to GDP ratio rose from 49 percent in 1990 to 123 percent in 2000.
  
  
  

• China will have the second largest number of Internet users in the world behind the U.S. by the end of year 2001. Yet, as the U.S. Internet user rate versus population approaches 60 percent, China’s penetration rate will only be less than 6 percent by the end of 2001.
  
  
  
  

• According to very conservative estimates by the Chinese government, the private sector and individuals in China have now amassed close to U.S.$1 trillion in liquid assets.
  
  
  

• Revenue in the China IT market will exceed $30 billion by 2004 (International Data Corporation).
  
  
  
  

• As of September 2000, there are 70 million mobile phone subscribers in China, representing only 4.5 percent of the total population.
  
  
  

• The number of mobile users in China will exceed 200 million within three years, according to IDC, yet market penetration will still be less than 16 percent. U.S. market penetration will exceed 50 percent by year 2002.
  
  
  
  

• According to the latest government released information, as of the end of 1998, there are 90 securities brokerage firms, of which, only 16 had registered capital of over U.S.$60M. Today, the biggest brokerage firm in China has assets under management of less than U.S.$4B. This pales in comparison to Merrill Lynch’s U.S.$299B and Morgan Stanley Dean Witter’s U.S.$317B. Both Merrill Lynch’s and MSDW’s numbers are as of year ending 1998.
  
  
  

• Of the 1.3 billion people in China today, 900 million are estimated to be farmers or peasants. The income ratio for farmers versus income for non-farmers is a whopping 2 to 5.