Uh-Oh: Now Jim Rogers Is Warning About the Chinese Property Bubble
by John Carney
Recently by Jim Rogers: Dow 1 Million? Sure, Why Not?
Jim Rogers is now saying that property prices in Shanghai and Hong Kong may be an inflating bubble set for a painful pop.
Recently, Rogers's bullish views on China have been contrasted in numerous media stories to the bearish views of Kynikos hedge fund manager Jim Chanos, who has been publicly warning of a China bubble.
In a Bloomberg story, Rogers seems to be changing or clarifying his views. Now he's warning that property prices are being driven higher by speculative demand. When it comes to property values there doesn't actually seem to be much distance between Chanos and Rogers.
Certainly, Shanghai real estate or Hong Kong real estate should decline, Rogers said in an interview in Bloomberg's Singapore bureau. My goodness, if anything's in a bubble in the world, that and U.S. government bonds are certainly very overpriced.
But don't put Rogers in the same camp as Chanos yet. While Chanos thinks the popping of the property bubble will have deep and destabilizing effects on the Chinese economy, Rogers is still bullish overall on the broader Chinese economy. And he's still saying that Chanos doesn't understand China.
January 21, 2010
Jim Rogers has taught finance at Columbia University's business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.
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