Salient to Investors:

Jim Rogers at Rogers Holdings said:

  • Likes what China said at its third plenum meeting. The one overriding point that the market is going to make the final decision is contrary to what is happening in the US, which is why the world is moving to Asia. America is more communist than Russia or China.
  • The momentum for reform in China has slowed in the last few years because of vested interests and its fear of losing power, so change won’t happen with a snap of the finger.
  • China should make the RMB convertible, liberalize interest rates, float the currency and open up capital accounts all immediately because China is the most successful country in the past 30 years and is no longer a weak economy. The RMB will continue to appreciate.
  • People in China are trying to get their money out but there is more money wanting to rush into China. The Australians, Germans and Japanese worried about opening up capital accounts but they all survived.
  • Buying Chinese H shares and overseas-listed Chinese companies – have never bought Chinese domestic A shares because it is always more expensive. Looking at buying the CSI 300 ETF which tracks the Chinese domestic stock market index. Bought defense stocks.
  • The US stock market is not in a bubble though some stocks are. The market averages are rising on fewer and fewer shares, which is always a red flag.

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