Jim Rogers talks up the Chinese yuan amid fears of a US market crisis

Legendary investor Jim Rogers suggests that if the Chinese yuan were fully convertible, it could be a preferred cash holding over the US dollar due to an anticipated US market crisis. Speaking at a Hong Kong investor event, the 83-year-old billionaire who has previously warned about a potential "extremely bad" crash following a rare global market rally, stated that the US dollar might overvalue.

Rogers noted that the Chinese currency should hypothetically be the destination for his investments. However, he acknowledged that current restrictions on the Chinese currency remain an obstacle. Rogers believes that China's massive economy will create "huge pressures" on its money flow, leading to a fully convertible yuan in the future.

Until then, he intends to continue purchasing US dollars, despite repeatedly warning that the United States is the world's largest debtor nation with nearly $40 trillion in national debt. The US dollar index has fallen by at least 8 percent since January 2025, while banks like Pictet predict the American currency will continue to depreciate over the next decade.

In contrast, the Chinese yuan has strengthened nearly 4 percent against the US dollar so far this year. Rogers also hinted at the possibility of selling his Chinese shares soon, as they have been increasing in value. Nonetheless, he remains confident in China's economic prospects and predicts that "China will be on top again" during his lifetime and that of his children's.

He emphasized teaching children Chinese and highlighted sectors like tourism, hotel, and infrastructure in China as promising investments. Despite the recent stock market rally in the US, Rogers expressed concern about a potential crash, which he described as "extremely bad." If the US were to enter a significant bear market, Rogers warned that Hong Kong, a place he loves and has invested in for decades, could be adversely affected.