Red hill Capital has been involved in arbitrage and inefficient markets since 1989.  The CEO of Red Hill has been in China for the past four years scouting out the possibilities.  First, he believes that the Chinese Yuan is extremely undervalued, and that is the impetus for the export of Chinese good to the West.  He also believes that the trading business is on its way out because of a number of changes that have been ongoing for several years but have accelerated in the past year.

At Red Hill, we have examined the various broad markets, in China.  We believe that, one day, the import business to China will be the market to be in, after the Yuan is properly valued and tariffs on imports are lifted.  When he first came to China, it cost him $300 to get a new battery for his Gateway computer, shipped from the US, after import fees, for example.  The goods export market is currently in decline because of new employment rules initiated in 2008, at least, and will continue to decline as the Yuan moves towards a fair value (see the In Country Analysis page of www.redhillchina.com ).  We have been advising sale of the Chinese stock market for almost two years, now, and the real estate market is overheated, even though prices have declined by 10 to 40 percent in major metropolitan markets.  Art is another investment market, which we have analyzed.  The teapot market, which is very Chinese, has pockets of extreme inflation in prices, and there are many fakes in circulation since the 1980's.  The market on which we are currently focusing is investment in oil paintings as an inefficient underpriced markets.  See the Leona Craig part of our website for art.