J. Christoph Amberger writes on todaysfinancialnews.com:
The earthquake in China not only destroyed homes and lives. It also disrupted infrastructure, industry and agriculture in the Chinese economic heartland. Combined with the rising yuan, the idling of industrial capacities, and China’s looming debt crisis, investors should review their Chinese stock holdings now.
… Sichuan and the surrounding areas are among the most populous in China. The province has 40 percent of China’s gas deposits and was responsible for over 20% of natural gas output in 2006. It has historically known as the “Province of Abundance,” being one of the major agricultural production bases of China. As the quake affected mostly rural areas, China’s rice and wheat and pork pork output will be severely affected at a time of already tight supplies and rising food prices.
