The Chinese Government Will Control Inflation Because It's Vital To Their Survival

Jim Oberweis of Oberweis Asset Management spoke to CNBC about the situation in China.

  • 0:50 China’s having an inflation problem because their growth is so strong, relative to the rest of the world. The government is making prudent decisions. Their interest is in preserving their power, and they are making decisions to contain inflation to do that.
  • 1:40 A lot of the tightening is priced in. Housing in China will continue to correct. The consumer, however, is the play of the decade if not the next 20 years. Infrastructure will remain strong, and environmental projects may offer opportunity.
  • 2:50 Our Chinese funds average over 20% return annually. There is a higher, long-term opportunity for rewards in China.
  • 4:10 Hong Kong shares offer the best transparency. There is opportunity in terms of Chinese stocks in the U.S. (SINA mentioned).
  • 4:50 Higher interest rates will put pressure to accelerate currency appreciation.
  • 5:25 Chinese equities will be a good way to expose your portfolio to the increasing value of its currency.


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