Don't bet against China, former Morgan Stanley Asia Chairman Stephen Roach said Monday.
Published: Monday, 19 Aug 2013 | 6:37 PM ET
"Fears of the crash are overblown," he said. "China's slowed. We know that."
On CNBC's "Fast Money," Roach said that Beijing has the ammunition to provide stimulus to its economy but the fact that they're not using it was a positive development.
"They're trying to do some big changes in the broad, macro structure of the economy," he added. "So, they're prepared to take a short-term hit."
"They're going up at a rapid rate from a low base, but they've got scale. They've got infrastructure, new capacity installed with new technology," he said. "They dwarf any of the smaller economies in Asia in terms of what they can deliver to the global marketplace."
Roach, who is a senior fellow at Yale University, said that he didn't see a China effect on U.S. Treasury bond yields.
The growth of China's cities, Roach added, suggests that the country will continue to experience a robust economy.
"The urban share of the Chinese population, 52½ percent last year, headed up to 70 percent by 2025 or 2030," he said. "And with type of push for urbanization, they're going to be a high-investment, high-infrastructure economy for years and years to come."
Roach also took issue with bearish outlooks such as that of Jim Chanos of Kynikos Associates, who has said China was a "great place to be short."
"This is an economy that needs a lot more to build the new cities that they require over the next 15 to 20 years," Roach added.
Watch the interview here: http://www.cnbc.com/id/100973192
AGO Price at posting:
95.0¢ Sentiment: Hold Disclosure: Held
