China is spending its Reserves in Commodities Farmland and Building Strategic Infrastructures

Jim Rogers Bloomberg Interview on China Strategy


Jim Rogers, chairman of Rogers Holdings, an early investor on the Chinese market talks with Bloomberg about his investment strategy for China.Rogers said that he first invested in China as far back as 1988 when it was not as popular amongst investors as it is today, "The Chinese have built up huge reserves for rainy days they are the largest creditor nation right now and now they are starting to spend those reserves but they are mainly spending them internally which an important thing to do and it seems they are spending them on strategically important things mainly infrastructure for instance they are rebuilding Sichuan province they are rebuilding the railroad system , they are doing things which will make more competitive coming out of this if the world will ever come out of this and that's the wisest thing to do in contrast of what is happening in America where Mr Obama and Mr Bush where spending the money on projects that won't do any good in the long term so the Chinese are doing good things from what we can gather " Jim add by saying "I am nor buying any stocks in China I have never sold any stocks since 1988 , but I have bought my last share in October November 2008 and I have not bought anything else since , the market have more than doubled in the last 9 months I do not like to jump on a moving train for things like that not at all ,I much prefer to buy when things collapse I am sure there will be collapse somewhere along the line in China .....
Rogers, speaking from Singapore, then discusses China's spending of its reserves, areas of growth in the Chinese economy and consumer savings.
Jim Rogers said he hasn’t purchased Chinese stocks since November “I much prefer to buy when things collapse,”
“Chinese consumers are consuming more,” Jim Rogers said. “To tell them to spend rather than save, the reason the economy has done so well is because they are huge savers and investors.”