Geographical economical imbalance and investment opportunities

I was in HongKong during those roller-coaster market days in the last a few day of last year. I wasn't totally immune to what was happening outside the world, thanks to the not-possible-completely-isolated-internet-bar. I was still able to see the bumpy road of western markets.

As well known, though, China/HK markets were terrific in 2007. China stock market gained 96%, secured the number growth market in 2007 in the region while HK ended as No. 2 with 39% gain during the year. South Korea got the third place. Strong growth in Asia is a sharp contrast to what is happening here (that is another story to be continued). Chinese believes that imbalance must be balanced by something. Such growth imbalance would be counter-balanced by what? There are many:

Imbalanced information in the society. Media is overwhelmed by social issues: inflation, crime rate, housing prices, etc. It isn't easy to break the cocoon to obtain fresh information (language is one of the barriers).

Imbalanced status. Western goods are widely deserved higher price and respect even though locally made ones are gaining momentum and usually priced at lower price. Certainly there is edge over "Made in China" so far.

Imbalanced tax system. Import/export tax is quite complex in China but not in HongKong. Better understanding on the system certainly makes things much easier.

Imbalanced communication needs. Who needs each other more, China or the rest? Hard to say. Let's put this way though, Chinese needs more knowledge of the world than the other way around. Go look at the book stores there will reach this answer easily.

Such imbalances are actually golden opportunities in the fast evolving world.