Tags: Ross | invest | China | banking

Wilbur Ross: It's Almost Time to Invest in China

By Dan Weil   |   Tuesday, 28 Jan 2014 12:13 PM

While financial markets are now pre-occupied with the idea of China slowing down, star investor Wilbur Ross, CEO of WL Ross, says it's just about time to jump in and invest there.

"I think China is getting very close to the point where one should be making more commitments to it," he told CNBC. "I think it's true they are slowing down, but by global standards, they are doing very, very well."

China's economy grew 7.7 percent in 2013 and 2012. Ross sees the economy expanding at a pace of more than 6 percent going forward.

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He also thinks the idea that China's banking system suffers from a crisis is "way overblown." Some analysts worry that Chinese banks have lent too much money to state-owned enterprises and local governments and that the growth of the shadow banking system augurs trouble.

"The Chinese central government controls most of the banks, controls most of the equities, has plenty of resources with which to deal with the thing, and is moving very aggressively to do so," Ross said.

"So I think the next big market that turns around could very well be China."

Not everyone is sanguine about the country's banking system. "Cracks are appearing in China's shadow banking system, which has been a major driver of the nation's credit explosion," writes Randall Forsyth of Barron's.

"This credit bubble has funded a property and infrastructure bubble that is built on shaky ground. Fears that it might finally be about to burst are reverberating through the global markets."

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