China’s economic resilience is under the spot light following a slowdown in growth rates in recent months. The big question facing investors in China and the global economy is can the world’s second biggest economy avoid a hard landing.
A rather interesting argument over the future of the Chinese economy has erupted following Jim Roger’s, the CEO of Rogers Holdings decision to call out two China bears in an interview with Investment Week.
Rogers dismissed fears over a hard landing and said both Hugh Hendry, who runs the Eclectica Absolute Return Fund and SocGen’s Albert Edwards are dead wrong to be so negative on the Chinese economy.
“Hugh has been dead wrong about China for three years now and China has not collapsed as he predicted, loudly, verbally and widely” said Rogers. Hendry used an interview with the Financial Times last week to predict bad things for investors and the global economy but has otherwise been keeping a low profile after betting on difficult times for China.
Rogers dismissed Edwards as being negative on everything, even Catholic saints.
“Albert has been bearish on everything for a long time. So if you are telling me he is bearish on China and bullish on everything else that would be different. But no, he is bearish on everything, including you, me and Mother Teresa” said Rogers in the interview with Investment Week.
With Chinese stocks doing so badly the debate is likely to rage on, but Rogers said he was becoming increasingly interested.
“The lower they go, the more interested I become.”
- By CNBC's Patrick Allen.