Posted by Good Returns Bookstore on 5th Jun 2008

Why invest in China? World-renowned author and investor, Jim Rogers tries to answer this challenging question in his new book A Bull in China. Where does one begin when looking at investing in foreign markets? This book is a fantastic start if you view China and it’s emerging markets as a potential investment opportunity. (Some investment funds are starting to make in-roads already into China; some boutique fund management companies have several investment funds available for investment in NZ.)

Rogers starts the book with an introduction detailing his ‘fist forays’ into China in his charmingly humourous style. He has a knack for explaining things ‘in a nutshell’ so that you understand the bigger picture and how different economic factors fit together or impact on each other.

Rogers explains, in good depth, the various shares you can purchase, which ones are available to foreigners, how to identify them, where they are listed and how the Chinese share markets are set up. Chinese, for example, can only purchase A-Shares, whereas B -Shares are available to foreigners.

Each chapter delves into a specific area of investment such as energy, transport, tourism and many more. Rogers gives an in depth view of the state of each sector, its origins and potential future outlook. Each chapter has ‘Jim’s Sino Files’ where he lists several companies, their share listing details, and a summary about each company. He notes each company’s growth over the past three years, some of these percentages are staggering, over 100% growth in many cases.

Rogers makes it clear he is not advocating you invest in these companies on his recommendation; they are merely starting points to illustrate the potential. Conduct ‘due diligence’ he says, but wholly advocates that you ‘take the long term view’ when investing in this still growing market. China is currently experiencing some of the highest growth rates in the world.

The main thrust of the book though is to encourage ‘anyone’ to take a good long look at China’s potential future opportunities. Whether you want to invest in ‘commodities in high demand or international companies doing business there’, really depends on your own strategy for financial security and wealth. But as additions to your portfolio, China may be the emerging market we should all turn our attention to.

I thoroughly enjoyed reading this book, the humour and anecdotes help keep things in perspective. The many references to the state of the non-existent roads in China only 20 years ago now seems alien when you see images of China on the TV, especially when you factor in the insane pace of construction in time for the Beijing Olympics this year.

Rogers’ succinctly sums up the investment opportunity with his last sentence; ‘”Do your research, pick a company you like and buy them, or sit at home and watch movies. It’s up to you, after all China won’t wait’.

Neither can I, I’m off to do some research!