conviction for a stronger RMB and we believe investors should be positioned to take advantage of this. Both Premier Wen Jiabao and the PBOC Govemor Zhou Xiaochuan have recently talked about using the currency as another tool with which to fight inflation. Since 2009. the PBOC has raised reserve requirements 10

to give way to "quality and effectiveness of development". He did not mention the growth target for 2020 in his speech. • PBoC's veteran Governor, Zhou Xiaochuan, warned about the risk of a"Minsky Moment" during a group discussions at the party congress. What he meant was the risk of a major crisis caused by