By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-27 15:20

China's stock market will remain bullish for 80 years, fund manager and investment author Jim Rogers said at an exposition yesterday in Shanghai, the Shanghai Securities News reported.

Rogers, in a presentation at a conference, also reiterated his suggestion to dump dollars and bonds and stay invested in commodities.

China's stock market is dangerously high but environmental protection, water, railways and renewable energy stocks are still worth holding, Rogers said.

To ride such a prominent China bull, Rogers said, investors nonetheless should be cautious after the country's benchmark Shanghai composite index quadrupled over the past two years.

Rogers sees opportunities in Chinese companies involved in sectors such as environmental protection, water, green energy, railways and education, where the government and public are expected to spend a lot of money.

"I'm not selling my Chinese shares. As I said, I bought more of them last week. If the market triples again next year I would probably have to sell my Chinese shares," said Rogers, who bought his first Chinese stocks in 1999.

Rogers, 64, urged investors to increase exposure to the Chinese currency, the yuan, and dump the US dollar, which he calls "a terribly flawed currency".

"The yuan is going to be one of the strongest currencies for many years to come," he said.