Book: Jim Rogers’ "A Bull in China"

How come investor Jim Rogers has all the best book titles? Investment Biker was a great title, and his new book A Bull in China is right up there too. Anyway, the fund manager and boffo China bull has a new book out on the country, and it’s getting positive initial commentary.

The blurb from the publisher’s site:

  • 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.

I’m planning to read it, so I’m curious to hear any comments.

Related posts:

  1. China Hearts Web 2.0 (from Work)
  2. The Aging Bull Market
  3. Living Downwind from China
  4. Jim Rogers Says U.S. Gov “Lying” About Inflation
  5. China vs. India in Economic Combat

Comments

  1. Some moderating factors to economic growth factors in China:
    1. Lack of land privitization
    2. Unwillingness to write off non-performing loans
    3. Lack of unfettered currency exchange
    4. Lack of subscription to GAAP
    It reminds me of the joke from the 90s: How do you become a multimillionaire in Brazil? (Start with billions).

  2. Dave says:

    Ho-hum. If its not China its India. If its not India its China. And then I remember how Japan was going to overtake the US.
    The reason there is such a high savings rate in China is that there is virtually no national pension plan and the population is aging. Furthermore thanks to a prediliction for birthing boys instead of girls there will be a giant sized cohort of men without women. This equals future troubloe as well as a further declining population, and not just because of the one-child policy.
    The US has 2.1 children per woman. Hong Kong has 0.8, possibly the lowest in the World.

  3. Nitin says:

    In Jim Rogers own words. The biggest show stopper for China is Water and one way to play China is to buy water treatment companies that work with China. I will be reading this book.

  4. Anthony says:

    I scanned the book. Not bad – not earth shattering.
    Big issue that I have with many asian corporations are simply profit margins are tight. When looking at companies there aren’t that many that pull in 20% return on equity. So if the market takes a dive like taiwan did this decade you get a lot of sideways movement in the market. Little stock buy backs to drive up the market and fundemental investors look elsewhere.