China’s macroeconomic climate has created an unprecedented opportunity for business growth. China’s population of over 1.3 billion furnishes a low-cost, hard-working and highly-skilled workforce that provides significant cost advantages in all production activities, making China the source of choice for manufactured goods. As a result of the boom in manufacturing, China’s per capita income in rising rapidly, converting China into a consumer society. It is our belief that the increasing domestic demand for goods, coupled with the ever expanding manufacturing base will continue to fuel the Chinese economic engine for decades to come. Adding still more impetus to China’s expansion is the fact that many of its companies are only now beginning to look outward for additional technologies and markets. The result is a broad range of opportunities for Chinese companies to achieve rapid expansion, as shown by the fact that more than a quarter of Chinese businesses grow at a remarkable 30 percent annually. Our assessment of the Chinese market is that these exceptional growth rates will continue or perhaps even accelerate as consolidation and the privatization of State Owned Assets occurs at a brisk pace in many sectors of the Chinese economy.

Chardan is in a unique position to capitalize on such opportunities and create beneficial scenarios for both Chinese companies and U.S. investors.