ALSO BY J I M ROGERS Hot How Anyone in the Commodities: Can Profitably World's Best Market Adventure The Invest Capitalist: Ultimate Road Trip Investment Around the World Biker: with Jim Rogers А BULL IN CHINA This book h a s been optimized for viewing at a monitor setting of 1024 x 768 pixels А BULL IN C H I N A ***** INVESTING PROFITABLY IN THE W O R L D ' S GREATEST MARKET J I M ROGERS R A N D O M N E W H O U S E Y O R K А Bull in China is a commoiisense guide to personal finance In practical advice books^ as in life, there are no guarantees, and readers are cautioned to rely on their own judgment about their individual circumstances and to act accordingly Copyright © 0 by Beeland Interests, Inc All rights reserved Published in the United States by Random House, an imprint of The Random House Pubfishing Group, a division of Random House, Inc., New York RANDOM HOUSE and colophon are registered trademarks of Random House, Inc Library of Congress Cataloging-in-Publication Data Rogers, Jim A bull in China: investing profitably in the world's greatest market / Jim Rogers, p cmelSBN: 978-1-58836-597-2 Investments—China Stock exchanges—China Stocks—China SecuritiesChina 5, Investments, Foreign—China I Title HG5782.R645 2007 332,67'30951—dc22 2007020932 Book design by Victoria Wong www atra n d о m.com vl.O For my Happy—my Chinese-speaking very best daughter^ investment ever Do not wish for quick results, nor look for small advantagesIf you seek quick results, you will not reach the ultimate goal If you are led astray by small advantages, you will never accomplish great things — CONFUCIUS A revolution is not a dinner party — MAO ZEDONG INDEX See also pollution equipment manufacturing, 87, 88 See also type of equipment ethanol, 156 Europe/European Union and automobile industry, 110, 113 consolidation of exchanges in, 34 food exports to, 156 and fruit, 149 gasoline in, 89, 91 turbine manufacturing in, 97 Everbank.com, 201 exchange rates, 35 exchange-traded funds (ETFs), 21, 98 exchanges and complexity of investing in China, decline in listings on, 22 futures, 152 growth of, 15-24 reform of, 36 Rogers's prediction about, 22 slowing of overheated, 25 See also specific exchange Expedia, 125, 132 ExxonMobil, 91 Fan Jianchuan, - Far Eastern Air Transport Corp., 127 farm equipment, 151, 152, 154 fast food, 154, 156-57 Federal Reserve, 58, 59 feed, animal, 151—54 Feicheng (Shandong province), agriculture in, 148-49 Feihe Dairy Company, 157 fertilizers, 162, 164, 165 fiberglass, 84 5th Research Institute of China Aerospace Technology Group, 189 film industry, - First Tractor Co., Ltd., 154 Five Star, 100 flipping, 31 Focus Media Holding Ltd., 75 food industry, - , 145, - , 150-51, 156-57, - , 198 See also agriculture Forbes magazine, 164, 197 Ford Motor, 65, 108, 112 Foreign Enterprise Service Corporation (FESCO), 175 foreign investment/investors by Chinese banks and institutions, 26 I 211 and Chinese fixed assets, 81 encouragement of, 65 and energy, 85, 86 and expansion of Chinese economy, and future of Chinese investing, and gro^^'th of exchanges, 15, 21 in health care, 170 and infrastructure, 106 and meat processing industry, 152 and oil, 90 and reform of stock market, 35 and risk of investing in China, 38 in Taiwan, 42, - 4 and Taiwanese as Chinese investors, 42, 73 and types of shares, 24, - for water facilities, 52 See also specific corporation Foremast Maritime, 115 Formosa Plastics Corporation, 48 Four Seasons, 127 Foxconn Group, 49 Foxconn International Holdings Ltd., 49 France, 154, 191 fruit'juice, 148-51 Fujian Expressway Development Co., Ltd., 47-48 Fujian Longking Co., Ltd., - 5 Fujian province and airlines, 139 housing/real estate in, 44, 182 investing in, 44 overseas compatriots" from, 73 sports industry in, 193 and tourism, 132, 139 See also Fuzhou; Xiamen Fujian Zhangzhou Development Co., Ltd., 48 futures exchanges, 152 Fuzhou (Fujian province), 44, - gambling, 122, 123, 127, 128, 190 Gansu Dunhuang Seed Co,, Ltd., 153 Gansu province, 95, 153 gas, 84, 85, 89, 91 GD Power Development Company, 86 Geely Automobile Holdings Ltd., 110, 111,112 General Administration of Press and Publications (GAPP), 196 General Electric, 47 General Motors, 65, 78, 108, 109, 110, 111 212 INDEX Generali, 176 Generali China Life Insurance Company Limited, 176 Germany, 59, 100, 118 Ghangzhou, airlines in, 138 Giordano International Ltd., 199 global warming, 94 GMP (Good Marketing Practice), 171 Golden Harvest Entertainment Holding Ltd., 192 Golden Resources Shopping Mall (Beijing), 183 Goldman Sachs, 118, 152 GoldWind Science and Technology, 101 golf, 132 GOME Electrical Appliances Holding Ltd., 199 Google, 76 Great New China Express, 139 Great Wall of China, 105, 130 Great Wall Motor Co-, Ltd., 112 Great Wall Sheraton (Beijing), 127 Great Wall (wine maker), 160 Greater Nile Petroleum Operating Company (GNPOC), 92 green companies/technologies, 54, 76 greenhouse gases, - Groupe Danone, 150 Guangdong province, 56-57 Guangshen Railway Co., Ltd,, 115-16 Guangxi Liu gong Machinery Co,, Ltd,, 87 Guangzhou province, 103, 114, 117 Guilin Tourism Corporation Ltd., 134 Guodian Changyun Electric Power Company, 100 Guodian Corp., 83 H-Shares, - , , , 3 Haier Group, 63, 66—67 Hainan Airlines Co., Ltd,, 139 Hainan Island, 133 Hainan Minsheng Gas Corp., 197 Haitong Eood Group Co,, Ltd,, 147 Hami (village), 127 Hang Seng Index, 26, 30 Hangzhou, infrastructure in, 107, 114 Harbin Pharmaceutical Group Co., Ltd,, 172-73 Harvard Business Review^ 197 HBO, 195 health care, 38, 48, - , 167, - health insurance, 174—77 Health Insurance Regulation Act (2006), 174 Healthy Liquor, 160 Heavenly Auspicious computers, 77 Hefei (Anhui province), 107 Heilongjiang area, 119, 163 Henan Lianhua Gourmet Powder Co., Ltd., 157 Henan Shuanghui Investment and Development Co., 152 Hengdian Group, 192 Hero (film), 191, 192 Hewlett-Packard, 42, 188 high-tech See technology Hilton, 127 Himin Solar Energy Group, 100 HIV/AIDS, - Ho, Stanley, 122 Hokkien See Fujian province holidays, national, 129-30 Home Inns & Hotels Management Inc., 133 Hon Hai Precision Ltd., 49 Honda, 65, 108, 109 Hong Kong Chinese reacquisition of, 73 consolidation of exchanges in, 3 - dairy products in, 156 housing/real estate in, 180, 183, 184 and infrastructure development, 106 as inspiration for Deng reform, 18 investments in China by, 73 retailing in, 199 as special administrative region, 64 tourism in, 120, 130 Hong Kong Disneyland, 122 Hong Kong Stock Exchange Chinese individual investment in, 27 and demand for new brands, 64 first Chinese listing on, 26 and growth of exchanges, 21 health care listings on, 173 infrastructure listings on, 107 IPOs on, 26, 27 Lianhua listing on, 64 and price of shares, 31 railroad listings on, 116 and reform of stock market, 33 sectors on, 30 Shenzhen exchange relationship with, 30 and state-owned shares, 21 Taiwan listings on, 49 and types of shares, - , 31, 32 INDEX Hopewell Holdings Ltd., 185 Hot Commodities (Rogers), 8, 201 horels/morels, 118, 127-28, Ш, 132 household names, 67—69 Household Responsibility System, 142 housing/real estate, 167, 168, 179-85 HSBC (Hongkong and Shanghai Banking Corporation), 17 Hu Jintao, 168-69 Hu Xiaolian, 33 Huadian Power International, 85 Hualian Supermarket Co., Ltd., 197 Hualo brand, 147 Huaneng Group, 83 Huangshan Tourism Development Co., Ltd,, 134 Huangshi Dongbei Electrical Appliance Company, 100 Huawei Technologies Co., Ltd,, 69, 188-89 Huawen Media Investment Corp., 197 Huayi Brothers, 192 Hubei Machinery and Equipment Import &C Export Corp,, 154 hydroelectric power, 82, 84, 85, - , 99 Hyflux, 53 Hymall, 198 IBM, PC division of, 63, 77 II Tempio del Paradiso (Venice), 119 index funds, 36 India, 50, 51, 57, 74, 123, 137, 152, 171 India Hospitality Corporation, 123 "individual travel scheme" (LPS), 121 Indonesia, 73, 90, 92 Industrial and Commercial Bank of China, 15-17, 27 Industrial Revolution, 72 industrial sector, 30 information technology (FT), 188 infrastructure, 103-8, 143 See also type of infrastructure Ingersoll-Rand Co., Ltd., 87-88 Inner Mongolia, 64, 68, 132 Inner Mongolia Yitai Coal, 86 innovation, 7, 38, - , 66, - , 74, I 213 Intercontinental Hotels Group, 133 International Energy Agency (lEA), 84, 88 International Trust and Investment Corporations (FTICs), - Internet, Rogers*s views about, 190-91 Internet services, foreign challenges to, 79 Intime (department stores), 0 Inventec, 42 investing, questions to ask before, 79 investment banks, 28 investors and growth of exchanges, 23 number of, 20, 59 and types of shares, - See also foreign investment/investors; institutional investors; joint ventures IPOs (initial public offerings) agriculture, 165 automobile industry, 109 education, 179 food industry, 150 and growth of exchanges, 20 in Hong Kong, 26, 27 increase in, insurance, 176 largest, 12, 27 on NASDAQ, 100 number of, 31 oil, 90, 92 publishing, 197 quotas for, 30 railroad, 115 regulation of, 31 retailing, 200 Rogers's views about, 31 on Shanghai exchange, 27, 31 on Shenzhen exchange, 31 tourism, 132 for Trina Solar, 100 on U,S, exchanges, 27 Iran, 92, 112 Iraq, 92 iron, 49, 115 J-Shares, 28, 29 Japan 75-77 institutional investors, 24—25, 32—33, 36, agriculture in, 162 automobile industry in, 104 58, 59, 106 insurance, 167, 174-77 Intel, 65, 74, 76, 188 intellectual capital, - intellectual property, , 171, 188 Baidu in, 76 Chinese influence on, 71 Chinese listings in, 28, 32 coal imports of, 87 currency in, 35, 200 214 INDEX Japan [cont'd]dairy products in, 155 dependency on China of, 43 downturn in, 60 education in, 74 and food industry, 147, 149, 151, 163 gas consumption in, 89 health care in, 175 invasion of China by, 72 maritime industry in, 115 medical equipment in, 171 as model of development, 66 number of investors in, 58 post-World War II, 59 risk in, 38 Taiwan relations with, 4 - tourism in, 118, 119 trade with, 34, 35, 43, 81 and types of shares, 28 and wine/alcohol industry, 159 and World War II, 59 See also Tokyo Stock Exchange Ji Qi, 133 Jianchuan Museum Town, 74—75 Jianfang Daily Group, 197 Jiangnan Heavy Industry Co., Ltd., - Jiangsu Expressway Co., Ltd., 107 Jiangsu province, 53, 96, 107 Jiangsu Sunshine Company, 99—100 Jiangsu Yueda Yancheng Tractor Manufacture Co., Ltd., 154 Jiangxi Hongdu Aviation Industry Co., Ltd., 46 Jiangxi province, 53, 100, 163 Jilin area, agriculture in, 163 Jilin Leading Technology Development Co., Ltd., 174 Jinglun Hotel (Beijing), 133 joint ventures agriculture, 152, 153 benefits to Chinese of, 65 film industry, 191 health care, 171 insurance, 176 publishing, 196 transportation, 106, 109, 111-12, 115 See also specific corporation Joy Global Inc., 87 juice, fruit, 149, 150-51 Juneyao Airlines, 139 Kailuan Clean Coal Co., Ltd., 86 Kazakhstan, 92 Kentucky Fried Chicken, 57 Kerry Properties Ltd., 183 Korea, 40, 71, 87, 115, 151 See also North Korea; South Korea Korean War, 40 Kunming province, 113, 128-29 L-Shares, 28, 29 labor force, Chinese, 64 Lake Baikal, 51 Las Vegas Sands Corporation, 122-23, 126-27 LDK Solar Hi-Tech, 100 lead poisoning, 50 Leadership for Life Inc, 179 Legend, 26 Lenovo Holdings, 30, 63, 77, 188, 189 Li Denghai, 153 Li Ka-Shing, 192 Li Ning Co., Ltd., 193 Lianhua Supermarket Holdings Co., Ltd., 64, 79, 198, 199 Liaoning province, dairy industry in, 155 life insurance, 175, 176 Lijiang {Kunming province), 128-29 Lion Diversified Holdings Berhad, 199 Little Sheep, 132 Lloyds, 176 London Stock Exchange, 28, 32 Long March Launch Vehicle Technology Co., Ltd., 190 Longgang development area (Wenzhou), 106 Longyuan Power Company, 100 M Media Group, 197 Ma, Jack, - 7 Macao Gaming Company, 122 Macau, 64, 120, 122-23, 126-27, 128, 130 Macau Venetian, 127 McDonald4,57,105, 155 McDonald's factor, 45 "Made in Japan," 66 Malaysia, 73 Mall of America (Minneapolis), 183 malls, 182-83, 184, 197 manias, 29, 59, 60 manufacturing, 9, 65, 143 See also specific corporation or type of manufacturing Mao Zedong, , , 72, 103, 113, 145, 155, 167 Marina Bay casino, 123 INDEX Maritime Biological Brewery, 159 maritime transportation, 114-15 Marriott, 133 Materne-Confilux, 149 meat processing, 151, 152, 153 medical equipment, 171, 172, 174 Mekerot, 54 Mengniu Yogurt Super Girl Contest^ 156-57 Merrill Lynch, 20 Metersbonwe Group, 199 MG sports cars, 63, 111 Michelin, 68 middle class, Chinese, 65, 163 Middle East, 90, 154, 156 military, Chinese, 45, 46 Ming Dynasty, 71—72 Ministry ot Commerce, 110, 198 Ministry of Railways, 116 Ministry of Water Resources, 51 Minsheng Bank, 176 Minzu Hotel (Beijing), 133 Mission Hills (golf course), 132 mobile phones, 77, - Morningside Group, 197 Motel 168, 133 Motorola, 49, 65, 74, 77 Murtaugh, Philip, 109 mutual funds, 33, 36 I 215 News Corp., 192 Nike, 193 Nikkei 2 , 58 Nineyou International, 28 Ningbo Bird, 7 - Ningbo (Zhejiang province), 107, 199 Nissan, 108 Nixon, Richard, 105 Nokia, 49 nontradable shares, 21, 23 See also stateowned shares North Korea, trade between China and, 43 nuclear power, 82, 84, 85-86, 94, 96, 97, 98 nuclear program, Chinese, - oil, 38, 68, 82, 84, 85, 88-93, 94 OK Air, 139 Olympics, Beijing (2008) and currency issues, 35, 200 and electricity, 96 energy for, 76 as "green," 56, 76, 163 and infrastructure, 106 and Lianhu expansion, 64 and pollution, 93, 104 sponsors for, 49 and sports industry, 193 and tourism, 129, 130, 133, 136, 138, 139 N-shares, - , 29 Nalco Company, 54 Nanjing Automobile, 63, 111 Nanning Sugar Manufacturing Co., Ltd., 156 NASDAQ, 27, 28, 33, 100 ''national champions," 63 National Electronic Trading System, 29 National Quotation Bureau, 29 National Tourism Administration, 131 nationalism, 38 NEC, 76 Nestle, 150 one-child policy, , 190 OPEC, 88 organic agriculture, - Organic Food Development Center, 162 Oriental Century Ltd., 179 Oriental Food (Holdings) Ltd., 151 Oriental Pearl College, 179 Osaka Stock Exchange, 28 OTCBB (Over-the-Counter Bulletin Board), - over-the-counter exchanges, Chinese, 29 "overseas compatriots," 73 NET (National Electronic Trading System), 29 NetWast.com, Inc., 191 New Oriental Education 6c Tech Group Inc, - New World (department stores), 200 New World Shanghai, 184 New Yansha Group, 183 New York Stock Exchange, 17, 19, 20, - , 32 Pacific Life, 176 Pan Am, 137 pandemics, 56 paper, 51 Parkson Retail Group Ltd., 198-99 PayPal, 77 Peace Hotel, 133 peanuts, 151 penny stocks, - People's Daily, 197 216 INDEX People^s Health Insurance Company Limited, 175 People^s Liberation Army, 78 People^s Pop-Tart Factory No 17, 79 Pepsi, 156 petrochemicals, 48, 51, 90 PetroChina Co., Ltd., - pharmaceuticals, 170, 171, 172-73 Philippines, 73, 139 Philips, 76 PICC Property &C Casualty Co., Ltd,, 177 Pine Agritech Ltd,, 164 Ping An Insurance (Group) Company of China, Ltd., 67, 176-77 Ping-Pong, 193 Pink Sheets, See OTCBB Pioneer See Yantai Changyu Pioneer Wine Co., Ltd piracy, 60 See also intellectual property Pizza Нш, , 5 political/social stability, 38, 49, 5 - pollution, 49-50, 51-52, 55, 82, 104 See also environment ports, 57, 81, - See also specific port poverty, 105—6 power plants, 48, 57, 83, See also electricity Price wa terhouseCoopers, 192 productivity, 65, 70, 75, 81-82 profits, and floating currency, 34—35 protectionism, 38 railroads, 68, 1 - , 128, 129 Reagan, Ronald, 120, 121 real estate, 35, 44, 74, 179-85 red chips, 26 regulation agricultural, 141, 162 of cable TV, 195 and complexity of investing in China, and decline in stock market, early stock, 17-18 of electricity, 82, 84 of food industry, 145 and future of Chinese investing, and growth of exchanges, 17-18, 19, 20, 23 and health care, 170 and infrastructure, 106 of IPOs, 27, 30, 31 of listings, 31 and London Stock Exchange hstings, 28 and reform of stock market, 32, 36 and risk of investing in China, 52, 58 and tourism, 131, 134 and types of shares, 25 See also Chain Securities Regulatory Commission PRS (Political Risk Services) Group, - publishing, 196-97 Pudong, China, Shanghai exchange in, 19 Pudong International Airport, 108, 114 Remy Cointreau, 160 renminbi See currency REpower Systems AG, 101 resources and risk of investing in China, 38, - 5 See also type of resource restaurants, 131-32, 151 retail and fashion, 79, - risk QFII See Quafified Foreign Institutional Investor Qing Dynasty, 72 Qingdao (Shandong province), 158, 182 Qinghai province, 95, 114 Qinghai-Tibet Railway, 135 Qingming festival, 129-30 Qualcomm, 76 and "back-office" problems, 60 China as low, - and China as success, 60 military/war, 38, - and political/social stability, 38, 49, 55-61 types of, 38 and water/environmental issues, 38, - 5 , 56 roads/highways, - , 81, 104, 105-6, Qualified Domestic Institutional Investor, 26 Qualified Foreign Institutional Investor (QFII), - , 32-33 Quanta Corp,, 42 Quantum Fund, Raffles City Shanghai Mall, 184 Raffles Education Corp., 179 1 , , 154 Rogers, Happy, 11 Rolls-Royce, 47 Rover, 63, 111 Russia, , , 88, 89, 1 , , SScP 500, 84 S&P Coal and Consumable Fuels index, 84 S-Shares, 27, 29 INDEX Sagem, 78 Samsung, 188 SARFT, 195 Saronno, 160 SARS, 56, 60, 164, 169, 173 satellites, 189, 190 Saudi Arabia, 89, 90 savings rate, 59, 66, 81 scandals, 21 SDIC Zhonglu Fruit Juice Co., Ltd,, 150 self-sufficiency, 144, 148 Sentosa casino, 123 service industries, 143 See also specific corporation or service Shaanxi province, 68, 85, 95 Shan da Interactive Entertainment Ltd,, 190-91 Shandong Denghai Seeds Co,, Ltd., 153 Shandong province, 85, - , 174 Shanghai as auto export zone, 110 cars in, 103 electricity in, 96 futures market in, 152 health care in, 172 housing/real estate in, 182 infrastructure in, 107, 114 organic markets in, 163 as port city, 57 power plant in, 82 publishing in, 197 railroads in, 113 real estate in, 35 shipyards in, 115 shopping malls in, 184 sports industry in, 193 tourism in, 129, 139 water for, 50 and wine/alcohol industry, 159 Shanghai Aerospace Automobile Electromechanical Co., Ltd., 190 Shanghai Automotive Co., Ltd., 66, 109, 111 Shanghai Construction Co., Ltd., 108 Shanghai Dajiang (Group) Stock Co., Ltd., 146-47 Shanghai Friendship Group Inc Co^, 199-200 Shanghai index, 20 Shanghai International Airport Co., Ltd., 140 Shanghai Jinjiang International Hotels Development Co,, Ltd,, 132-33 I 217 Shanghai Jinjiang International Travel Co., Ltd., 126 Shanghai MeiUnge Co., 133 Shanghai Oriental Pearl (Group) Co., Ltd., 195-96 Shanghai Share Broker's Association, 17 Shanghai Solar Power Tech Ltd., 190 Shanghai Stock Exchange activity of, 30 capitalization of, 17 distinct identity of, - domination by, 18 establishment/opening of, 17, 19 and growth of exchanges, 16, 17, 18, 19, 20, 23 IPOs on, , railroad listings on, 116 and reform of stock market, 33 setting for, 19-20 and types of shares, 24, 25 Shanghai Tyre and Rubber Co., Ltd., 68 Shanghai World's Fair (2010), 35, 138, 140 Shanghai Young Sun Investment Co., Ltd., 54 Shangri-La, 127 Shantui Construction Machinery Co., Ltd., 87 Shaolin Temple, 130 Shaoxing (city), wineries in, - shareholders, rights of, 21 shares price of, 31 types of, 15-32 Shell, - Shenyang (city), biochemical industry in, 156 Shenzhen Development Bank, 19 Shenzhen (Guangdong province), 35, 116, 132,18S-S9 Shenzhen Stock Exchange, 17, 19, 24, 25, 29-30, 31, 33 Shinva Medical Investment Co., Ltd., 174 shopping centers, 182-83, 184, 197 shorting, 44 Shui On Land Ltd., 183 Siberia, , 8 Sichuan Chengfa Aero Science 6c Technology Co., Ltd., 47 Sichuan Minjiant Hydropower Company, 99 Sichuan province, 106, 134, 148, 161 See also Chengdu 218 INDEX Sina.com, 27 Singapore, 18, - , 73, 123, 172 Singapore Airlines, 138 Singapore Stock Exchange, 27, 32, 53 Singhua Yang Guang, 100 Sino Eiles agriculture, - , - , 152-54, 164-65 air transportation, - alternative energy, 97—101 automobile industry, 111—13 aviation industry, 138—40 education, 178-79 energy, - 8 , 97-101 fast-food, 156-57 food industry, - , - , - health care, 172-74 household names in, - housing/real estate, 183-85 infrastructure, 107—8 on innovation, 75—77 insurance, 176-77 oil, - purpose of, 7—8 railroad, 115-16 and risk of investing in China, - tourism, 125-27, 132-35, - transportation, 107-8, 115-16 and war, - water/environment, - 5 wine/alcohol, - Sino Land Company Ltd., 184 Sino-Portuguese Joint Declaration (1987), 122 Sinomem, 53 Sinopec See China Petrochemical Corporation Sinovac Biotech Ltd., 173 skiing, 119-20 social security, 170 solar power, 76, 82, 95-96, 9 - 0 , 190 Song dynasty, 71 South Beauty, - South China Mall (Dongguan), 183 South Korea, , , 89, 111, 147, 155, 178, 191 Southeast Asia, "overseas compatriots" in, 73 soybeans, 144, 152, 164 Spain, and fruit, 149 SPDR S&;P Mining and Metals, 98 "Special Economic Zone," 19 speculation, 34, 35, 181 "split-share^ system, 24, 32 sports, Rogers's views about, - Ssangyong, 111 STAQ (Securities Trading Automated Quotations) system, 29 STAR, 195 Star Alliance, 138 Star Sports TV, 192 Starbucks, 155 State Administration of Foreign Exchange (SAFE), - , 33 State Council, 148 State Environmental Protection Administration, 52 state ministries, 78, See also specific tninistry State Power Corporation, 83 state-owned enterprises (SOEs), 29, 33, 46, 78, 83, 89, 171 state-owned shares, 5, - 2 , 23, 32 steel, 72, 115 stock markets board members of, 137 complexity' of, 24 decline in, number of, 15 reform of, 2 - , - regulation of size of, - volatility of, 58 See also specific market Sudan, 92 SUFA Technology Industry Co,, Ltd., 98 sugar, 155-56 Sun Yat-sen, 94, 130 Sunray Holdings Limited, 172 Suntec Power Holdings Co., Ltd., 76 Suntech brand, 99 supermarkets, 198 Suzhou (city), health care in, 170 Taiwan as Chinese "province," 64 dairy products in, 155 economy of, , 42 film industry in, 191 foreign investment in, - 4 high-tech industry in, 188 Hong Kong listings of companies from, 49 and infrastructure development, 106 as inspiration for Deng reform, 18 interdependence of China and, 42 investments in China by, 73 INDEX and risk of investing in China, 38, - , 48, - tourism in, 44, 124, 130 trade with, - , 47 Taizhou, as auto export zone, 110 takeovers, 32 Tarn, Vivienne, 198 Tang, David, 198 Tang Dynasty, 71 Taobao (auction), 77 taxes/tariffs agriculture, 141, 143, 144, 145, 148 automobile, 109, 110 and China^s accession to the WTO, 79 energy, 85, 96 and foreign investments, 36 health care, 170 housing/real estate, 181 infrastructure development, 106 petroleum, 91 and tire industry, 68 wine/alcohol industry, 159 technology, 30, 33, 66, 188-89 See also specific corporation or type of technology telecommunications, 30, 69, 76, 79, 194-95 Tencent Holdings Ltd,, 191 Tesco, 198 textiles, 51, 81 Thailand, "overseas compatriots" in, 73 Three Gorges Dam, - , 99 3Com, 188 Tiananmen Square, 56, 129 Tianjin (city), 46, 108, 110, 139, 179 Tianjin FAW Xiali Automobile Co., Ltd,, 111-12 Tianjin Port Development Holdings, Ltd., 107-8 Tianjin Stock Exchange, and growth of exchanges, 18 Tibet, 114, 128, - Tibet Shengdi Co., Ltd., - Time Warner, 192 titanium, 49 tobacco, 144 Tokyo, Japan, housing/real estate in, 181 Tokyo Stock Exchange, 28 toll roads, 105, 106 TOM Group Ltd., 192 Tong Ren Tang Technologies Co., Ltd,, 173 Top Star, 133 Torres, 159 I 219 Toshiba, 42, 97, 188 tourism, 70, 79, 117-40 and aviation industry, 135—40 domestic, 118 Occidental, 119-27 regulations about, 131, 134 and restaurants, 131-32 Sino Files about, 125-27, 132-35, 138-40 in Taiwan, 44 and transportation, 104, 118 Toyota, 108, 109, 1 toys, 81 Tracker Fund of Hong Kong (ETT), 21 trade in agriculture/food, 146, 148 and China as building global links, 57 in Chinese history, - and currency reserves, 81 and future of Chinese investing, globalization of, 75 and reform of stock market, 34 U.S,-China, 34, 35 See also specific nation transparency, 21 transportation and agriculture, 144 automobile, 108-13 infrastructure for, 103-8 maritime, 1 - railroad, 113-16 Sino Files about, 107-8, 115-16 and tourism, 104, 118 Travelocity, 125 TravelSky Technology Ltd., 126 Trina Solar, 100 Trust-Mart, 198 Tsinghua University, 86 Tsingtao Brewery Co., Ltd,, 26, 63, 161 turbine manufacturing, 97 U.N World Tourism Organizations, 130 Uni-President Enterprises Corporation, - , 150 UNICEF, 170 United Family Hospitals Group, 172, 173 United Kingdom, 124, 171 United Nations, 51 United Nations World Tourism Organization, 120 United States agriculture in, 143, 144, 162 automobile industry in, 104, 113 220 INDEX United States [confd): China compared with, 10 economy of, 58 education in, 74 and farm equipment, 152, 154 film industry in, 191 fruit in, 149 gas consumption in, 89 gasoline prices in, 91 health care in, 169 influence in China of, 59 number of investors in, - oil consumption in, 89 risk in, 38 trade in, 34, 35 wages in, 64 universities, online fibraries of, 76 Unocal, 90 Uranium Participation Corporation, 98 U.S Department of Agriculture, 155 U,S Department of Commerce, 52 U,S Department of Defense, 45 USEC Inc., 98 utilities See type of utility Venezuela, 88, 92 Venice, Italy, 119 venture capital, 27 Veolia Environment, 54 Vietnam, Baidu in, 76 Virgin Atlantic Airways, 124 Volkswagen, 66, , 1 wages, - Wal-Mart, 64, 79, 198 Wall Street Journal, 35 Wang Boming, 20 Wang, Vera, 198 Wang Yongqing, 48 Wanxiang Qianchao Co., Ltd,, 112—13 war, and risk of investing in China, 38, 39-49 war on terror, 39 Warburg Pincus, 150, 172 Warner Bros., 192 Warner China Films, 192 waste treatment plants, 50, , 52, 53, 54 water resources, 38, - , 79, 143 wealth, 74 Weichai Power Co., Ltd., 113 Weilong (spirits), 160 Wen Jiabao, 56, 143, 169, 188 Westinghouse, 97 wheat, 144 White House Council on Environmental Quality, 188 wind power, 82, 86, 93, 96, 100, 101 wine/alcohol, 144, 158-61 Wong Kwong Yu, 199 work ethic, 66, 67 World Bank, , , , 4 World Health Organization (WHO), 168 World Trade Organization (WTO) and access to Chinese market, 79 and agricuhure, 141, 144, 148, 155 and automobile industry, 110 and banking system, 58, 67 China entry into framework of, and competition, 65, 67, 79 and high-tech industry, 188 and insurance industry, 175, 176 and telecommunications, 195 and tourism, 130 and wines/spirits, 159 World War II, 40, 59 World War III, 44 Wu Yi, 128 Wuhan (Hubei province), 50, 110, 116 Wuhu, as auto export zone, 110 Wuhangye Yibin Co., Ltd., 161 Wuyuan Organic Foods, 163 Wynn Macau, 123 Wynn Resorts, 123 Xi, Cindy, 179 Xiamen {Fujian province), 44, 47, 139 Xiamen International Airport Co., Ltd., 139 Xiamen International Container Terminals, 47 Xiamen ITG Group Corp., Ltd., 47 Xi'an {Shaanxi province), 70, 112 Xinhua Finance Media Ltd., 197 Xinhua Media, 197 Xpress Group Ltd., 194 Yadavaran oil field (Iran), 92 Yahoo!, 77 Yantai Changyu Pioneer Wine Co., Ltd., 153, 158, 159, 160 Yantai North Andre Juice Co., Ltd., 150 Yanzhou Coal Mining Co., 87 Yao Ming, 193 INDEX Yellow River Hydroelectric Development Corporation, 95 Youngor Group Co,, Ltd,, 199 Yuan dynasty, 71 Yung Wing, 124 Zhang Ruimin, 66 Zhang Yimou, 191 Zhangzhou, Taiwan, as port city, 48 Zhejiang Expressway Co., Ltd., 107 Zhejiang Eeida Environmental Science &C Technology Co., Ltd,, 55 I 221 Zhejiang GuYueLongShan Shaoxing Wine Co., - Zhejiang Omex Environment Engineering, 54 Zhejiang province, corruption in, 106 Zhengzhou Stock Exchange, 152 Zhenzhen Topway Videl Communication Co., Ltd,, 196 Zhonghuanxian Expressway, 108 Zhu Rongji, 26, 55 Zhuhai (special economic zone), 116 A B O U T THE AUTHOR Born on October 19, , J I M R O G E R S had his first job at age five, picking up bottles at baseball games After growing up in DemopoUs, Alabama, he won a scholarship to Yale Upon graduation, he at tended Balliol College at Oxford where he earned his first Guinness record as coxswain of the crew After a stint in the army, he began work on Wall Street He co-founded the Quantum Fund, a global in vestment partnership During the s , the portfolio gained Д О percent, while the S5cP rose less than 47 percent Rogers then de cided to retire—-at age thirty-seven—but he did not remain idle Continuing to manage his own portfolio, Rogers served as a pro fessor of finance at the Columbia University Graduate School of Business and as m o d e r a t o r of The Dreyfus Roundtable on W C B S and The Profit Motwe on F N N At the same time, he laid the groundwork for his lifelong dream, an a round-the-world motorcycle trip: more than 0 , 0 miles across six continents, his second Guin ness record T h a t journey became the subject of Rogers's first book Investment Biker (1994) Rogers^s Millennium Adventure 9 — 0 , his third Guinness record, took him and his wife through 1 countries, through half of the world's 30 civil wars, and over , 0 miles Fiis second book, Adventure Capitalist, chronicled that incredible journey N o w a contributor to F o x News and other news and print out lets, he has recently moved to Asia with his wife and daughter He c a n be reached at www.j imrogers.com ABOUT THE TYPE This book was set in Sabon, a typeface designed by the well-known German typographer Jan Tschichold (1902—74), Sabon*s design is based upon the original letterforms of Claude Garamond and was created specifically ro be used for three sources: foundry type for hand composition, Linotype, and Monotype, Tschichold named his typeface for the famous Frankfurt typefounder Jacques Sabon, who died in , ... Cataloging -in- Publication Data Rogers, Jim A bull in China: investing profitably in the world's greatest market / Jim Rogers, p cmelSBN: 978-1-58836-597-2 Investments China Stock exchanges China Stocks China SecuritiesChina... engage China and all things Chinese Go there if you can, or if you've already climbed the Great Wall, go back again to see the great changes Even at home, you could take a class in tai chi and then... too, in ) The first share trading firm was established in Shanghai as early as 8 In , during a boom in mining shares, European and Amer ican businessmen founded the Shanghai Share Broker's Association,