Jim Rogers Buys Chinese Shares, Likes Currency
This weekend, Bloomberg reporter William Bi reported that legendary investor Jim Rogers is bullish on Chinese shares and currency. China’s stock market, the world’s fourth largest, surged from 2005 to 2007, but has plunged as much as 39% this year. According to Bi, Rogers told a seminar in Beijing on April 26 that:
“All my new money goes to commodities and China. All the panic looks like a bottom. I have bought in the last four to five weeks. I’ve been buying shares in China for the first time in a long time.
The Bloomberg reporter wrote:
Rogers said he bought shares related to tourism and education, which “in China will continue to be a major industry.” Other investments include those of airlines, water companies and agricultural producers, he said.
“China has a huge agricultural problem,” Rogers said. The “government is doing everything it can to revive the agriculture industry.”
The co-founder of the Quantum Fund with George Soros also spoke positively of the yuan (or renminbi), China’s currency. Rogers predicted the currency could eventually rise to 2 yuan per dollar, and said:
“Don’t sell your renminbi, because it will go a lot higher in the next 20 years.”
According to Bloomberg, the yuan has gained more than 4% against the greenback in 2008, after climbing 7% last year.
Source:
“Investor Jim Rogers Buys Chinese Shares as Market Hits ‘Bottom’”
William Bi
Bloomberg, April 27, 2008
