|
I believe this man makes a lot of sense when he talks economics. Dozens of companies are also listed with brief descriptions of each. The reports from China are amazing. But he is great at looking at the big picture and investing according.He made me money with an earlier book, Hot Commodities, which I had for four years before I invested in commodities. My takeaway is that if you are looking for places to invest, then get this book.
If you watched the 2008 Olympics you saw a new China. I learned this by reading his earlier books about driving around the world. If I had invested when I first read the book, I would be retired 2 or 3 times over. He does not recommend any company in the book, he only mentions them to give the reader a broad understanding.If you want to know what's going on in China and profit from it, from a man who knows how to make money, this book is a great place to start. And so I am a fan of Jim Rogers.
The descriptions are good because you get a sense of what if happening in China, but for the average American investor most of these companies cannot be invested in.But even if you only focus on Chinese companies listed on NYSE and NASDAQ or get into the Chinese Market ETF (FXI) you can still make a nice long term gain. It explains why China is growing and why it will continue to grow. Another reviewer has already painstakingly detailed the book chapter by chapter. Even though commodities have taken a huge tumble lately the bull market is not over yet and they will make me more money.But this book is about the money that can be made in China.
The growth, the production, the consumption, and everything about China is not just super-sized, it's gigantic-sized. The author compares China to the Wild West of America. Anytime someone makes you a lot of money, you tend to become a fan. This book also breaks down all the sectors of the economy. Everything from travel to agriculture to the Chinese space program is discusses and dissected in easy to understand language. The author stresses that investing in China is a long term process with ups and many downs along the way. I hope this review helps. Lots of money to be made, but you have to be careful.By looking at the trends in the US market and what is going on around the world, it makes sense to reason that investments for the next few decades will probably get a higher return in places like China than in the US.
He admits to being a lousy trader. Even if you don't agree with me on this point, you will probably agree that diversifying by investing in China is not a bad idea. With three stock exchanges, close to double digit GDP growth every year, and the largest financial reserves, there is plenty of opportunity here.I am writing this review to help you decide if you should buy this book or not. If you want to read more of my reviews of stock trading and investment book, you can get them at www.thetradingtipster.com. It opened my eyes to China when I first read it and am patiently waiting for an opportunity to invest in the largest bull market of our lifetime. And if you believe that then this book will help.
As a big Jim Rogers fan, I am amazed to find myself giving his book a 1 star rating. While his first 3 books were excellent, this book should never have been published.The book gives a cursory rehash of the "China is the next great super power" argument (which I believe is true) and then just gives long lists of random Chinese stocks with short and shallow rambles in between stock lists. The book makes it clear that the listed stocks are not recommended stocks, just a long list of all the Chinese stocks that the author could come up with. It's obvious that no research was done on the stocks listed and most have no more than 1 paragraph on them describing what they do.
5. In 2005, there were an estimated 510,000 public disputes across China, a sign that some forms of protests are being allowed. 1. 26. China Mobile is the largest cell phone operator with 300 million subscribers. In 2005, 98 percent of villages were electrified and the second largest consumer of electricity in the world.
It is reasonable to expect a 300 to 500 percent rise against the debt ridden US dollar over the next twenty years. 23. All factors in Japan's downturn through the 80s. 6. In 1997, during the Asian financial crisis, China's market soared 38 percent. China's growth may not be strongly tied to US economics.
The yuan levels against the dollar are increasingly strong. A single US farm hand works 140 acres and is 200 times more productive than his Chinese counterpart, who works one acre. 24. Keeping holdings in the Chinese Yuan, or renminbi, may be a relatively safe way to hitch an upward ride on China's growth. China plans on a $42 billion investment in agrarian infrastructure: more efficient irrigation systems, retail markets, and e-commerce. Owing a piece of the things that china's hot economy simply can't do without guarantees less need to worry about governments, management, or pension funds.
China has a baseball league, the CBL, Basketball (CBA), football (CSL). 2006, China had sixty million credit card owners. China will reach US oil consumption of 20 million barrels a day within twenty years. 16. Will China float its currency freely. 29.
Because China is a country with high savings, a stock crash won't have the same impact on capital for expansion. 15. Lenovo Group (LNVGY) caters to 160 countries and 2006 revenues reached $1.3 billion 10. 28. 13. In China, coal accounts for 70% of the electricity capacity. foreign companies will invest to solve China's environmental problems. 2006, sixty-five million investment accounts or 10 percent of the population of China, grow from nothing.
corruption is comparable to Asian tigers c. Do you want to profit from increased purchasing power of the biggest middle class the world has ever seen. 27. 18.
American Depositary Receipts is a way for Americans to invest in China. The Chinese saving and investment rate exceeds 35 percent among its 1.3 billion people. 7. 2006, there were 440 million mobile phone services and another 48 million expect to join by 2007. 2009, the banks break even and by 2013, they are $1.3 billion in the black.
There are 110 million Chinese carriers of hepatitis B and C. In 2000, as the US internet bubble burst, China's economy surged forward 49 percent. 22. What are the biggest challenges facing China. Chinese oil companies boost exports of diesel to take advantage of better prices on the world market. 11. In 2006, China attracted $70 billion in foreign investment and brought their foreign currency reserves about $1.3 trillion.
rural dwellers replenishing aging labor b. There are eighty million bloggers. Commodities will be a way to profit from China's expansion. China imports 3.5 million barrel/day of oil. The Big five include China Datang Corp, China Power Investment Corp, China Huaneng Group, China Guodian Corp, and China Huadian Corp.
Shanda Interactive Entertainment (SNDA) claims 2.29 million active accounts. 9. Foreign investment and Chinese innovation should sustain demand for higher quality Chinese products, a similar cycle that the Japanese import/export cycle experienced in the 70s/80s/90s. 14.
Shanghai Aerospace Automobile Electromechanical engages in military and civilian work, makes satellite-data-receiving equipment, auto parts, battery panels, and solar battery panels. In 2007, China became a net importer of Coal. China ranks number one in world farm output. 20. 3. Due to price control, China ranks with the US among the countries with the lowest gas prices. 25.
17. In 2006, China produced 50 percent of the cameras, 30 percent of the worlds air conditioners, and 40 percent of the microwaves sold in Europe. 12. China Spacesat (SHA) has increased orders for smaller satellites. 2. 2006, there are 137 million internet user in China and 76% have high speed internet.
By the end of the 1990s, the Chinese central government controlled less than 50 percent of the power production. Changes in regulation, reduction of tariffs, and the promise of greater market access for foreign first are beginning to shape competition in fields like banking, media, and telecommunications. Will the higher valuations on the yuan cripple Chinese exports. Chinese oil refineries are among the best-managed enterprises. Much of China's growth has been internal and stimulated by domestic demand.
Will the turmoil rise to the point where it would seriously affect the business and investment climate. 8. China needs $2 trillion in electricity infrastructure between 2001 and 2030. 4. Excess liquidity, balooning credit, an asset boom and over-investment in loss-making heavy industries. Three reason why China's economy will flourish: a.
30. Chinese companies have plenty of places other than the stock market for cash. There is room for upward growth in Chinese industry, including power and energy, tourism and media, agriculture, infrastructure, and high tech. The Chinese government plans on spending $200 billion on renewable energy.
Between 2000 and 2004, China jumped from nineth to fourth in world agricultural exports by emphasizing products they have a comparative advantage: a half pound peach, fuji apples, Chinese Walnuts, mushrooms, garlic, Christmas trees, Mandrin Oranges, and strawberries. The US imports are not the only influence in China. China has a rural population of 940 million. Is China heading for a "hard landing" as the Chinese government struggles to control growth. Huawei Technologies sold 1.5 million notebooks in 2006. China's farm production remains relatively unproductive.
19. 21. The Chinese governments have been will to let gas prices rise to regulate use and allow Chinese oil companies to stay profitable. 31.
If you are unfamiliar with the changes in China, there are many other better books that can help you to better understand the changes. He also does not teach you how to find out more about these companies and regulations that might affect investors. But I found Rogers' book very flimsy. China is growing fast and they are here to stay and perhaps are on their way to become the next great world power. I agree with Jim Rogers. Etc.If you are thinking about investing in China then it is important to understand their culture, politics and recent business environment and Rogers tries to provide readers with some basic material here, but the lack of depth or new insights make this book not worthwhile. There are lists of companies in various industries, but Rogers provides hardly any information. There is no depth though.
Where can we get financial statements on companies listed in Shanghai stock exchange. Book is also poorly organized. China is way too important for investors to ignore. For example there are no answers to important questions like: Does China have anything analogous to SEC, GAAP. If you already know about these changes, then this book adds hardly anything. One minute he can be talking about the different dynasties or the cultural revolution, the next minute he talks about the newest companies in different industries.From an investor's perspective, it gives you some information about various companies and types of shares (ie: A shares, H shares, etc). What is executive compensation like. Here are some other books that I recommend:China Wakes (a little outdated but still very important)China RoadWild Swans
As a professional in the investment business I highly recommend this book. I will sum it up in a few words. A book that all CEOs, World Leaders and anyone serious about understanding the positioning of the United States in the decades to come. A fascinating book written by an intriguing person, the combination equals a must read.
|
