Jim Rogers, CEO & Chairman of Rogers Holdings says a slowdown in China’s economy would be a good thing. The only person I would listen to regarding China is Jim Rogers!
While everyone is panicking about a soft or hard landing in China, investor Jim Rogers continues to be bullish on the country. In an interview with CNBC, he says that China is slowing down because it wants to slow down, and investors should not be surprised by it.
A key indicator of China’s slowing economy is its decelerating property market. We previously reported that China’s property bubble is very different from America’s, a point that Rogers reiterates:
“In America people could buy four or five houses with no job, no money down and then the banks took the mortgages and diced them up even more. In China you cannot buy one house with no money down, with no job. There are strict limits on housing.
Yes there’s been a housing bubble in urban-coastal real estate in China. Yes its going to pop because the Chinese government is popping it with their own will. Americans certainly didn’t do anything like that.”
While Rogers is concerned about shadow-banking, he thinks the country’s debt problems do not compare with the the U.S.:
“China is the largest creditor nation in the world. America is the largest debtor nation in the history of the world. I’d rather be with the creditors than with the debtors any day.”