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Rodgers'S Confidence In China'S Economic Prospects Is Great.

2016/4/6 11:08:00 40

RodgersChina'S EconomyConfidence

In the past month, the S & P and Moodie, the three largest credit rating agencies in the world, have made a move to reduce China's sovereign credit rating outlook, turning the outlook for China's sovereign credit rating from "stability" to "negative".

Moreover, the two rating agencies also downgraded the outlook for credit rating of some of China's state-owned enterprises to negative ones.

Generally speaking, a rating agency downgrades the sovereign credit rating of a country. In essence, it is to ignore the economic performance of the country, and its impact on investors' behavior is quite large, which will affect the investors' assessment of the countries being evaluated.

Investment confidence

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Therefore, the rating of China's sovereign credit by the two major international credit rating agencies will, to a certain extent, adversely affect investors' psychological expectations of China's future.

But does this mean that China's economic outlook is indeed in a "negative" state as the international rating agencies look forward to? Obviously, different organizations and different investors will have different ways of looking at different angles, different positions and different time points.

According to media reports, recently, Jim Rogers, an international financial investment master, took part in the Symposium on economic development of the Yangtze River Delta in Yangzhou, Jiangsu Province, taking part in the "innovation and sharing 2016 global and China investment opportunities".

This is Rodgers's own view that some western economists believe China will fail. In his view, China will become the most important country in the twenty-first Century.

As the world's three largest financial magnate with Buffett and Soros, Rodgers is also known as the "Wall Street myth". His view of China's economic prospects is obviously not a guest talk.

He even revealed that his children were learning Chinese.

So why is it the most famous in the world?

Investor

One of the reasons why Rodgers would value China so much and look at the future of China's economy? Where exactly is the difference between it and the S & P and Moodie? Obviously, it is closely related to the understanding of China's economy and the different interest groups it represents.

For the S & P and Moodie, though expensive as an international credit rating agency and one of the most influential credit rating agencies, it will inevitably be tied down by a small number of countries and investment institutions. Then, according to the needs of these countries and interest groups, the credit rating of other countries and enterprises will be made.

The evaluation conclusion should also be in line with the interests of a few countries and investment institutions.

The prospect of shorting China and reducing China's sovereign credit rating is also well understood.

For Rodgers, as a professional investor, the most important thing to consider is whether it can make money, how much money it can make and where to make money.

Naturally, there is no need to stand on the side of any country or interest group, and do not need to express their views according to their will.

Therefore, his views on China's economic prospects may be more realistic, more objective and reasonable than that of rating agencies.

S & P, Moodie, etc. can make a clear look.

China's economy

The move of the future is also inseparable from the contradictions and problems that China is facing at present. It is inseparable from the pressures and difficulties China's economy faces.

If China can enter the new normal as soon as possible through economic restructuring and structural adjustment, and enter a healthy, orderly and sustainable development track, international economic organizations, institutions and so on can not find any excuse for shorting the Chinese economy.

And Rodgers and other professional investors can come to China more confidence.

Therefore, Rodgers's confidence in China's economic prospects is not only an endorsement of the achievements of China's economic development, but also an affirmation of the Chinese government's ability to formulate economic policies, and it helps China fight back on the behavior of Western investors and their international institutions to go short of China, and is conducive to China's progress in accordance with its established goals.

I believe that Mr. Rodgers's view will attract international attention and attention, and it will help China better respond to the international argument of shorting China.


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