Jim Rogers, chairman of Rogers Holdings, said he has been buying shares of Chinese companies even as growth in the world’s fourth-largest economy slows.
Rogers, 66, started buying Chinese shares in 1988 and is now favoring equities traded in Hong Kong and Singapore that are cheaper than yuan-denominated stocks in Shanghai. Hong Kong’s Hang Seng China Enterprises Index, which tracks the city’s so-called H shares, climbed 1.4 percent today. The CSI 300 Index, which tracks shares in Shanghai and Shenzhen, lost 0.9 percent.
China is slowing but “some parts of the Chinese economy will be totally unaffected by what happens in the West,” Rogers said in Hong Kong yesterday. “I started buying in October again. I never sold any Chinese shares.”
The global credit crisis has dragged the world’s largest economies into recession this year, hurting demand for Chinese products. China’s exports fell for the first time in seven years in November, imports plunged and output contracted by a record.
The People’s Bank of China has cut interest rates five times in three months to support a 4 trillion yuan (US$586 billion) spending package for reviving an economy that grew in the third quarter at the slowest pace in five years.
Hong Kong’s H-share Index plunged 51 percent this year, the biggest annual decline since at least 1994. The CSI 300 fell 66 percent last year, the second-worst performance in Asia this year after Vietnam’s benchmark index.
Rogers said he has been buying Chinese agricultural stocks amid government measures to bolster growth. Other industries he favors are infrastructure in China, water and tourism in Asia.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
RSS