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Investing - Brookfield Asset Management

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<strong>Investing</strong> – China<br />

• China continues to experience strong growth<br />

and dis expected dto be the world’s largest economy<br />

within 10 years<br />

• Government leaders have mandated slowing<br />

growth and inflation<br />

NDEX PERFORMANCE INDEX PERFORMANCE<br />

150<br />

125<br />

100<br />

75<br />

50<br />

MSCI China<br />

China RTO<br />

• Banks to reduce growth in loans on real estate<br />

– Stock markets have declined over past 12 months<br />

25<br />

-<br />

Sep-10 Dec-10 Mar-11 Jun-11 Sep-11<br />

– Several Chinese companies with North American<br />

listings have experienced severe contractions<br />

in valuation amid governance concerns<br />

– $US debt markets for many Chinese issuers have closed<br />

– Potential opportunities to assist liquidity constrained companies in industries<br />

well known to <strong>Brookfield</strong><br />

163 | <strong>Brookfield</strong> <strong>Asset</strong> <strong>Management</strong> Inc.

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