Posted on January 20, 2010 - by Drizzt

Marc Faber:China bust unlikely in near future

Photo by FABIOLA MEDEIRO

Is the Chinese economy is on a bubble? The China bubble is a subject passionately under discussion among business leaders, economic experts, commodity analysts and investors.

Leading investment pundits have been coming out with their predictions on whether China is sitting in a bubble economy or not. Short-sell veteran Jim Chanos recently said that China is another Dubai, sitting in a precarious excess credit circle. Since excessive credit in China is ballooning, it might burst soon, Chanos predicted.

Many investors have panicked ever since Chanos’ forecast that China will crash under unbridled growth without economic fundamentals. A crash in China would mean that commodities markets—the main driver of the Chinese economy—will collapse.

Global commodities investment guru Jim Rogers, who has been a passionate investor in the Chinese market, has hit back saying Chanos does not know the fundamentals of the economy in China. Rogers further blasted Chanos saying people like him who did not know to pronounce the word China some years back are now experts on the Chinese economy.

While Rogers and Chanos are warring on China, let us look at what is another celebrated commentator—Marc Faber—has to say on the China bubble. Faber, publisher of the Gloom, Bloom, Doom report almost agrees with Chanos on the China bubble forecast, not with Jim Rogers. Read more…

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2. United FTSE/Xinhua China A50 ETF – Getting access to A Shares
3. Why invest in China?