Monday, May 2, 2011

A collection of Jim Chanos' bearish view of China

Jim Chanos, a short selling hedge fund manager, made his fortunate and fame by spotting Enron's problem early. Now he returns under the spotlight by betting against China, especially the real estate market. Using his own word, "China's property bubble is Dubai x 1000". We will see how much he will be right or wrong this time.

Some of his arguments
1. China's fix asset investment is at 70% of GDP and it is not sustainable. The transition between a infrastructure investment driven to a consumer based growth will be painful and the consumer can't pick up fast enough.
2. He is not all bearish about China and some of his China related long positions include casino operators such as LVS and WYNN. His argues that corruptions in China are hard to control and some of the money are ended on black jack tables in Macau.

From Business Insider
The Fundamental Difference Between The Soviet Union And China  Apr 2011
Jim Chanos Just Announced The One China Long Bet He's Making  Feb 2011
Jim Chanos Explains Why There Won't Be Gentle Landing In China  Feb 2011
A Year After Calling Chanos An "Ignorant Slut", Stephen Roach Is Getting Nervous About Chinese Inflation  Jan 2011
Jim Chanos: Adam Smith Will Get His Revenge In China  Dec 2010
Jim Chanos Ratchets Up The China Rhetoric, Says It's On A Treadmill To Hell  Apr 2010
UBS' Jonathan Anderson Slams Chanos: China Is Nothing Like Dubai   Feb 2010

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