The A, ADR, B, H, J, L, N, NET, OTOBB, and STAQ of Trading Chinese Shares
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One of the many complications of investing in Chinese equities is deciphering where they can be traded at the lowest cost. Not all shares have the same rights and prices. Early in the book, Jim Rogers spells all of that out for you.
In the same light style that made Investment Biker and Adventure Capitalist entertaining books, Jim Rogers tells you how China became a capitalist country again and is progressing towards becoming a greener, more innovative source of competition. Economic sector by economic sector, he describes where China was, is today, and seems to be headed. At the end of each sector, he lists the companies (and where the trade -- including the ticker symbol) while summarizing what they do and their three-year change in revenues and profits. It's a dazzling overview that you couldn't hope to match by reading a hundred magazine articles.
This book is an excellent complement to Hot Commodities where Mr. Rogers explained beautifully the commodities boom that has enriched so many who have paid attention.
I have two concerns about this book:
1. Why bring this out when Chinese stock multiples are up in the stratosphere after climbing almost 100 percent in 2007?
2. Although he strongly advises buying on dips, what's a dip for a stock that's trading at 75 times next year's projected earnings? There's no advice on this point.
Mr. Rogers is certainly very bullish on China, and he doesn't see much that could go wrong for very long. Hmmm. That story seems familiar. I usually hear it just before a market pops. Is this book a sell signal for China? He points out that you can still play China indirectly through commodities. That is certainly the safer play. Why then invest in China? It's certainly a situation I cannot monitor personally very well. And I have no idea how accurate those financial reports are. I think the book could have used a few more caveats.
Read and learn. But keep thinking before you do anything now.
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good personal perspective but lacks true knowledge and vision
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I did enjoy this new book by Rogers. He is doing it again with another new story, which is on China this time. Though full of deslightful personal stories on a fast-changing China and its vast new opportunities, Rogers' knowledge about Chinese business and politics is rather limited, to say the least. He has yet to learn about what is really behind the changing China life, both opportunities and challenges. Indeed, there are tremendous problems inside, mainly a corruptive bureaucratic system still in place, which stops the making of truly modern business organizations and law-based market practice. Most foreign business operations have also run into tough problems of this nature. For these deeper issues, two new books are highly relevant: 1. China and the new world order; 2. China's global reach, by George Zhibin Gu, which detail the general picture how China is struggling with corrupt government power and the ongoing competition of both Chinese and global multinationals competing in the same marketplace.
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