The chinese have been rising interest rates, they know they have an inflation problem, they know they have a real estate bubble in urban coastal areas, and they are trying to deal with them both. That sort of thing I watch, it is good what they are doing, I think they can do other things as well.
China has a blocked currency. They have been opening it up more and more in the past 5 years, and certainly in the past year or two. But that is part of the problem. They have all that money trapped in China, it cannot get out, and so it has to go somewhere, so its going into the property market.
in bloomberg.com
Related ETFs: iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF)
Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.
