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BBC news is reporting that Chairman Mao's portrait has been replaced by an image of the Olympic stadium on the new ten Yuan bills.

Although the revolutionary icon becomes less relevant with each passing year, it's interesting to note that the bird's nest is the Symbol that was chosen to replace him.

There is obviously a huge amount of national pride and effort invested in preparing for the Olympics (from shutting down steel mills and factories, to cleaning the air, to reports of hundreds of babies named after the games). This underscores the potential fallout of any unexpected negative event. No one will know why China's stock market has been cut in half in the last 9 months, until we see the Olympic story unfold.

From a Global Macro Risk Management perspective, managing proactively toward possible tail risk is what we have a responsibility to do. We continue to have an eye on developing Chinese trends ahead of the critical August event.

Andrew Barber
Director
Research Edge, LLC

(LINK) http://news.bbc.co.uk/2/hi/asia-pacific/7492896.stm