GUANGZHOU (Fund China) - There are three investment theme brought forward by Franklin templeten Sealand fund management in its 2008 investment strategy report,the proposed benefit from the appreciation of the domestic currency, demand expansion and asset integration.

It is optimistic to Real estate and the financial borad’s higher-than-expected performance and the periodic industries of the upper reaches performance in the near future. Franklin templeten Sealand fund management pointed out that the Shanghai and Shenzhen 300 index gained a lot in 2006 and is up significantly this year. There will be a more than 30% yield but with a increasing volatility in the 2008 equity market.

Franklin Templeten Sealand fund management is prudential and optimistic forwards the next year’s market.

For its optimism: a sustainable increasing growth of the published corporation brought by China’s rapid economic growth; a structural oversupply of capital caused by a negative real interest rate and limited investment channels and the indusrtral capital transferring to Securities of government-led value creation has not yet reach its peak.

For its prudence: it needs time for the investment yield brought out by the short term over high valuation to cool down; the elevated index needs more and more new capital injection for its rise and the negective factors’objective exit in the stock supply acceleration.

Copyright Fund China 2008.

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