Investment opportunities in China of Chinese Listed Companies _Transfer from wilson brother_

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					Investment opportunities in China of Chinese Listed Companies (Transfer from
wilson brother)
Investment opportunities in China of Chinese Listed Companies (Transfer from
wilson brother)
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Preface

    ?Citizens health care, housing, education, livelihood three terms are considered
directly related to the interests of everyone. So far, three major reforms already under
way, but compared to China's economic development, a number of reforms
that promote slow, no one is to mature. So this delay has caused some economists,
sociologists criticized. I will not discuss the housing and education reform, focused on
health care reform and will lead to investment opportunities.

    ?China's health care system experienced a planned economy era, the
era of the market in two stages, experience has shown that the two systems in China
are unsustainable. The third health care reform being attracted many eyeballs. Is the
British-style government-led universal health insurance model or adopt
American-style high degree of market-oriented health care system, or a road with
Chinese characteristics?

    ?Although the overall medical reform program has not yet introduced, but some
want to change it has been a consensus, then such a depth and range of the reform are
to create promising Wei of China's pharmaceutical industry will bring what
kind of change? China's pharmaceutical enterprises themselves what
characteristic? As a stock investor can derive a decent investment opportunities?

   ?The answer is yes.


Policy and environmental articles

    ?Third Chinese medical reform plan have not yet introduced, but is ready to go,
and revealed some clues. As one of the three people's livelihood, health
care, for people of no means confined to the industry.

    ?China has realized that as a great power, relying on export-led economy is
neither sustainable nor controlled by others, is very dangerous, so make consumption,
investment, exports power troika of the national economy. And whether or not it is too
late, this is clearly an improvement. Consumption is the leading troika, but housing,
medical care, education is the top priority of consumption.

    ?One of several key health care reform is to expand health insurance coverage,
strengthening the state's investment, so that more people
"enjoy" to this benefit. This is bound to birth a large expansion
of the medical profession. As the per capita income is not high, and the shortcomings
of the old system, leading to the present stage of national health care spending to
some extent be suppressed. The medical reform will thus to some extent the release of
this pent-up consumer demand.

    ?Western countries, is well known that China's national savings rate is
very high, which of course culture and habit, but I think a more fundamental reason is
the Chinese people's livelihood hardship caused by prolonged unsettled.
Just think, as citizens of a high-welfare state, in addition to housing, the basic health
and education spending by the state contract, we have reason not to consume it? We
are justified in the context of overall inflation, saving you crazy? On the contrary, at
this stage of the Chinese citizens, housing, medical care, and education, without
exception, we must consider the focus of spending, so we have to consider to build
their own nest egg (the contingency payments, pensions), as a hedge, and this nest egg,
must demand safe, so China's national savings rate remains high on a
matter of course. If we do not have their own health and education spending, we will
buy a car to roam around, go drinking, go to happy up. Or to the pursuit of security is
not high but high returns and other financial management of the.

    ?Therefore, the success of China's medical reform, not only is the
industry's own problems, is related to the promotion of the national
consumption of other plans, this is a key, this key finding, open the lock, and spending
half of the door will open. The leading troika is likely to start. This is the most
important Chinese medical reform of economic and social significance.

     ?Chinese economy, according to newspaper reports, since 2007, the industry
circulated a rough estimate that with the increase of government investment, the new
rural cooperative plan will bring additional capacity to pay the market about 400
million new community capacity to pay the health care market 500 billion to 290
billion yuan. If by drugs accounted for 50% of the proportion of revenue estimates,
the new rural cooperative purchasing power of new drugs is about 20 billion yuan,
community health care market spending power of new drugs 250 billion to 140 billion
yuan. And two sides together, the health care market new ability to pay about 900
billion to 340 billion yuan, thus, expansion of the pharmaceutical market consumption
about 450 billion to 170 billion yuan. In addition, the release of the medical needs of
the patients rate the potential growth of the pharmaceutical market size of about 1,000
billion to 450 billion yuan. Thus, in 2006, China's pharmaceutical industry
realized 470 billion yuan sales income, the new medical reform brought about by the
expansion of the pharmaceutical market doubled in size than the increase again. Of
course I do not racking our brains to predict, but the expansion of this market trend is
no doubt. According to the latest published data, the national pharmaceutical industry
in 2007 sales revenue of 639.269 billion yuan, up by 24.9%, total gross profit of
62.999 billion, an increase of 55.56%.
     ?In addition, China's demographic dividend * (Note 1) has been close
to capacity, although not immediately into an aging society, but the aging of the
population has begun. According to the fifth census in 2000 showed
China's working population aged 15-64 and 8.8 million of the total
population of 70.15%. 2003 to 70.4%, experts predict that in the next 15 years, the
proportion of the labor population is about 70% in 2020 to peak. This is the
world's highest proportion of the labor force. Also reported that
China's current population growth rate has been lower than 0.9 ‰, while
the fifth national census in 2000 showed that over 65 years old in China reached
6.95% of the total population, by 2004, China has over 65 years old reached 142
million, accounting for 11% of the total population, crossed the 7% of the
internationally recognized threshold of an aging society. 2010 China's
aging population will reach 200 million, to around the year 2044 or even as high as
400 million. So, objectively speaking, is just the beginning of the new century into the
first year of an aging society, this trend will continue for nearly half a century. Dwell
so much because of course, b

				
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