E A Portuguese Lesson For Greece

The shares of companies which suspended trading in their shares after they plummeted are not being included in the index which shows the rise, be it the large cap all-China index, or that of Shanghai or “high-tech” Shenzhen. Nearly half of all listed shares are still suspended and the rise is mostly in large cap state-supported firms and banks. Shares can return to the market if they recover from losing 5% of their value in a given day, an operation which is separate from a listed company suspending trading to protect its assets.

I think the amount of capitalism being fostered by Beijing is extraordinary and also dangerous. Today I present an alternative model for economic development via stocks.

*The Singapore holding company Yoma Strategic Holdings (YMAIFclosed its books on the 2014-5 fiscal year. After taking over automobile and tire businesses last year and adding drink distribution businesses and the ownership of a shopping mall in Dalian (China), the founder, the Burmese Serge Pun, consolidated more of its interests in Yoma, YMAIF. It owns stakes in a telephone tower business and agricultural land mostly producing coffee for global companies plus a UHT treated milk company. The chairman and founder's son, Melvyn Pun, is about to become its CEO replacing the non-Burmese Andrew Rickards of Australia who is retiring. It partners with SPA (Serge Pun & Associates), the family enterprise of the Singapore based Burmese founder. The younger Mr Pun who takes over July 27 wants to match its real estate portfolio with a non-real estate one of the same size.

Besides property, Yoma already owns consumer businesses (like the recently opened Kentucky Fried Chicken franchise), logistics and warehouse facilities, and tourism businesses in Myanmar often operating alongside the Pun family's other holdings. Yoma offers balloon rides to view Myanmar's incredible Bagan Buddhist temples from the air. It also owns a tourism hotel in that holy city.

The first real estate gated township development in Myanmar, FMI City, near Rangoon, is now totally sold and leased on 465 acres of land. Its commercial leases include the first ever department store in Myanmar. There are 1345 additional acres for development as it grows. The Pun Hlaing Golf Estate with an 18-hole course designed by Gary Player is also now selling homes, as of Mar. 31. Star City, with 9000 apartments, and 10 mn sq ft of residential space, and 1.7 mn of commercial space is next to come out.

The ultimate in property will be Landmark Development with 2 mn sq ft of gross housing and commercial area including the Yangon Peninsula Hotel and a 5-star condo building, executive serviced apartments for business people working in Myanmar is being built in partnership with Mitsubishi Estate and Mitsubishi Corp of Japan, and Hongkong & Shanghai Hotels. Pun Hlaing will include from 2017 an international school which will be run by London's Dulwich College, itself a sub of Education Index Management. (There already is an international elementary school at FMI. Education is part of the Pun program.)

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