From 1999 to the autumn of 2005, and in the whole year of 2006, I was buying A shares in China, but in 2007, I prefer H shares," said Jim Rogers, according to today's China Business News.

Rogers said the price difference between A share and H share in China is big. Prices of A shares are still expensive compared with H shares in the same company.

The stock market in China has bubbles, said Rogers, explaining growth is fast when the Shanghai Composite Index soared from 3,600 points to 5,000 points within two months.

Rogers warned it would take a long time to recover from a burst, referring to Japan's experience.

Japan's stock market has not returned to its previous highs after 17 years' recovery, said Rogers.

When asked of his investment direction, Rogers said he will not tell which stocks he has bought, but would like to say which industries are promising, including national defense, aviation, tourism, realty, and manufacture.

A day after the US Federal Reserve cut interest rates by 50 basis points, Chinese stocks began a march to higher price levels. The Shanghai Composite Index yesterday finished up 74.8 points or 1.39 percent to 5,470.07, a new record high close.

(China Daily September 21, 2007)