Jim Rogers, who correctly predicted a bull market in commodities that began in 1999, and helped to send oil and gold to a record 26-year high, expected China's stock market to boom because China’s economy is improving. He also believed that the Chinese government would encourage investment in the stock market.
Well, I am not quite sure if he made a right call this time.
China’s GDP grew by 10.9% in the first six months this year, followed by a 9.9% growth in 2005 and 10.1% growth in 2004. Beijing has been trying very hard to slow down the economic train in recent years. There is absolutely no reason for the government to fuel the stock market, and pump more money into the system in the near future.
But, many Chinese do wish Jim Rogers is right.
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