Repost 06 July 2006 e-mail Part 2 (Final)

Major trends to pay attention to in the coming months:

1. I will continue to focus on China internal demand stocks and RMB assets related stocks. But once again, everything has its price, be sure to do your own valuation to find out the "fair" value to avoid paying too much!

2. China allow electricity companies to increase their fees, this sector will definitely be benefited. This indicates that China is gradually moving toward market economy. Companies will be allowed to increase gasoline prices, water prices, electricity prices, etc. in the future. Do some research on companies that will be benefited from these changes and avoid companies that will be affected by increased costs.

3. International trades between China, US, and other companies will continue to expand as long as US economy does not slow down. You can see that trading related sectors are picking up (ports, trading companies with international networks, ship building companies, etc.)

4. Strong China economic growth will continue to support demand for oil, coal, copper, etc.

Hopefully, the above information will help you develop your own strategy and make some money from the stock market.

Philip Wah, Investment Division
FQ Coaching Limited

Disclaimer: This e-mail is written for educational purpose only. Please do your own independent analysis before investing your hard-earned money into the stock market.