Jim Rogers is Bullish About China Even After its Stock Market Crash
Can you be bullish on a country whose stock market crashed more than 40% in less than three months? The answer is a resounding “yes,” at least according to renowned investor Jim Rogers. The billionaire investor recently spoke at an asset management forum in Shanghai, and was quite confident about Chinese economic growth. (Source: Wall Street predators Rogers: promising Chinese economy is continuing to buy Chinese stocks, PEdaily.cn, last accessed September 26, 2015.)
Jim Rogers believes that tourism would be one of the next booming industries in China. He said that in the past, the Chinese people seldom chose to travel overseas. But nowadays it has become a lot easier for Chinese tourists to obtain passports and Visa, which makes travelling internationally much easier. This is one of the reasons why Rogers believes tourism in China will have a bright future.
His most recent purchase took place roughly two weeks ago. It was a stock in the tourism industry. Rogers said that the company had been on his shopping list for a year and suddenly hit the right price. While he said that the company was very cheap, he did not buy a lot.
Other than tourism, Rogers didn’t forget his longtime favorite—the agriculture business. Indeed, with 1.6 billion mouths to feed, China’s agricultural sector has no choice but to grow—literally. Rogers said that big cities in China had enjoyed solid economic development, but many rural areas fell behind. He believed that the next focus for the government would be economic development in rural China, which would facilitate strong growth in the agricultural sector.
In addition, Rogers considered environmental protection, financial services, biotech, and railroad to be industries with huge opportunities in China.
The bullish view on China was quite popular last year when its stock market skyrocketed. This time around, though, it is uncertain how many would share this view.
China’s stock market crashed big-time recently. Since its peak of 5,166 points on June 12th, the Shanghai Composite Index has plunged more than 40%! However, compared to this time last year, the index is still up 31.8%. That is, even after the dramatic crash, the return in China’s stock market is still phenomenal compared to financial markets in other parts of the world.
Jim Rogers has always been bullish on China. In 2007, he sold his mansion in New York City and moved to Singapore. He believed in the strong growth potential in Asian markets. Even his first daughter is learning Mandarin to prepare for the future. He was famously quoted as saying, “If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.”