A Bull in China: Investing Profitably in the World's Greatest Market
Format: PDF / Kindle (mobi) / ePub
If the twentieth century was the American century, then the twenty-first century belongs to China. Now the one and only Jim Rogers shows how any investor can get in on the ground floor of “the greatest economic boom since England’s Industrial Revolution.”
In this indispensable new book, one of the world’s most successful investors, Jim Rogers, brings his unerring investment acumen to bear on this huge and unruly land now being opened to the world and exploding in potential.
Rogers didn’t just wake up a Sinophile yesterday. He’s been tracking the Chinese economy since he first went to China in 1984 in preparation for his round-the-world motorcycle trip and then again, later, when he saw Shanghai’s newly reopened stock exchange (which looked like an OTB office). In the decades that followed–especially in recent years, with the easing of Communist party financial dictates–the facts speak for themselves:
• The Chinese economy’s growth rate has averaged 9 percent since the start of the 1980s.
• China’s savings rate is over 35 percent (in America, it’s 2 percent).
• 40 percent of China’s output goes to exports (so there’s no crippling foreign debt).
• $60 billion a year in direct foreign investment, combined with a trade surplus, has brought Beijing’s foreign currency reserves to over $1 trillion.
• China’s fixed assets–ports, bridges, and roads–double every two and a half years.
In short, if projections hold, China will surpass the United States as the world’s largest economy in as little as twenty years. But the time to act is now. In A Bull in China, you’ll learn what industries offer the newest and best opportunities, from power, energy, and agriculture to tourism, water, and infrastructure. In his trademark down-to-earth style, Rogers demystifies the state policies that are driving earnings and innovation, takes the intimidation factor out of the A-shares, B-shares, and ADRs of Chinese offerings, and encourages any reader to trust his or her own expertise (if you’re a car mechanic, check out their auto industry).
A Bull in China also features fascinating profiles of “Red Chip” companies, such as Yantu Changyu, China’s largest winemaker, which sells a “Healthy Liquor” line mixed with herbal medicines. Plus, if you want to export something to China yourself–or even buy land there–Rogers tells you the steps you need to take.
No other book–and no other author–can better help you benefit from the new Chinese revolution. Jim Rogers shows you how to make the “amazing energy, potential, and entrepreneurial spirit of a billion people” work for you.
and abuse; the potential collapse of the banking system due to bad loans or the collapse of the social security system due to the burdens of an aging population with fewer children; investment bubbles, frenzies, and crashes; a loss of competitive advantage as wages rise; bungled currency policy and overprotectionism; too much or too little foreign capital in play; leadership arrogance and incompetence; rising nationalism; and a lack of innovative thinking. Sound familiar? Many of these risks
which provides the irrigation for 70 percent of the nation’s grain, has fallen victim to rapid urbanization. The mighty Yangtze may be biologically dead by 2012: it now absorbs 40 percent of China’s wastewater, 80 percent of which is untreated. Meanwhile, many treatment plants, like those on the giant Three Gorges Dam, are not being used to capacity. One hundred eighty cities depend on the Yangtze River for their drinking water, including Shanghai, Wuhan, and Chongqing, with a combined population
shake out more industry leaders. But in China, as everywhere else, it’s good to answer these questions: Does the company have too much debt? Does it have good proﬁt margins? Does it grow nicely? Does its management have strong incentives to succeed (for example, large stock ownership or options)? Does it have strong competition or is it a dominant player? Is it a leader or a follower? Is it in a growing market—for example, iPods instead of horseshoes, BMW’s instead of bicycles? Shopping for
coal sector—in order to speed the modernization and environmental improvement of existing mines. Despite China’s lack of adequate oil and gas reserves, the country’s huge coal reserves will continue to ensure growth. Many developed countries are likely to suffer from energy shortages and high prices due to their dependence on oil rather than coal—another reason to consider China, and its position of strength, on a long-term strategic basis. Jim’s Sino Files: Making Juice Flow Huadian Power
head of the New York Stock Exchange to the Great Hall of the People! His original plan was to experiment with stock issuance in Shenzhen, since he’d tried out almost every other facet of the new system. This farming village on China’s southern border with Hong Kong boomed into a prosperous city of six million after it was designated the ﬁrst “Special Economic Zone.” In 1988, the Shenzhen Development Bank, born of numerous credit unions, was allowed to sell ﬁve hundred thousand shares of common