Jim Rogers favors several sectors in China stocks amid global volatility

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IN AN exclusive interview with Jim Rogers, he said he favors several sectors in the Chinese stock market amid global volatility and US-China trade tensions.

The author of “A Bull in China: Investing Profitably in the World’s Greatest Market,” and a famous global investor who co-founded the first international investment fund with George Soros in 1973, has made several remarkable predictions. The most recent was Jim’s short positions in the US real estate in 2006 or so before the subprime crisis occurred in 2007.

As a pioneer in investing in China’s shares back in the 1990s, Jim has deep and broad knowledge on China’s economy and he believes some Chinese industries have a bright future ahead as he personally owns Chinese fintech companies such as Beijing-based Tiger Broker and he feels there are ample opportunities in Chinese stocks.

Some of his quick picks mentioned are those supported by the Chinese government such as pollution clean-up with regards to air, water and soil; health care; and agriculture. This is in relation to the Chinese government’s efforts to create a cleaner environment.

He foresees tourism to be great in the longer term, for the next 10-20 years, as Chinese citizens have more purchasing power to travel and spend overseas.

Another theme he highlighted are the industries in the Belt and Road Initiative (BRI).

When asked about the possibility of Fed hikes which could affect the global economy, his response was that other central banks have to follow suit and take their interest rates higher. And the “interest rates have never been like this in the history of the world.”

“Central banks do not know what is happening and it is their experiment at best,” Jim added. The world’s debts will increase as a result of the interest rates going higher.

Jim is also particularly concerned about the peer-to-peer lending business and that business has been coming under pressure. The recent clean-up was a way to prevent it from getting out of control.

He feels that although China financial markets haven’t been performing as of late, China will be leading the run when it is the time for the bull market.

Currently, Jim resides in Singapore and runs Rogers Holding and Beeland Interests Inc. And both his daughters are fluent in Chinese.