US rate cuts and renewed excitement surrounding the Chinese liquidity theme swiftly despatched any lingering concerns about CDOs,sub-prime woes and the impact on the real economy of a US credit crunch.Massive credit write-downs by various of the leading international banks have been supportive.Emerging markets are back in favour,Hong Kong listed stocks continue to run hard in anticipation of Chinese spending.There is little hard data as yet,but with the Hong Kong market trading more than US$20bn per day,international investors seem to be increasing their allocations to this market.The liquidity environment for Asia following the sub-prime crisis is thus proving substantially stronger than initially feared.Over the month of September we initiated a position in United Group,Australia,a provider of mining services and thus a beneficiary of booming resources demand.