Since the beginning of economic reforms two decades ago, the economy in China has produced real growth rates of between 8 percent and 10 percent per year. It is believed that China will continue to experience exceptional growth for decades to come at rates well above those of any other large country in the world. In this talk Professor Burton Malkiel discusses why China will enjoy growth rates of economic activity well above those in the developed world. But economic growth does not necessarily translate into high-security Returns. Indeed, returns from investments in Chinese equities

have been unattractive for the past decade, and corruption and corporate governance issues, as well as a variety of restrictions, make direct investment in Chinese opportunities difficult. But Malkiel shows that Chinese equities now are attractively priced relative to their earnings, their historical valuations, and their growth rates and that some risks have been attenuated over time. Malkiel then proceeds to examine the potential rewards and risks of the various indirect methods U.S. investors can use to access the Chinese market. For example, Professor Malkiel examines the lower risk strategies of investing in companies not necessarily domiciled in China but that sell to or service Chinese consumers and producers and thus can profit from the rapid future growth of the Chinese economy.