James Chanos, president and founder of Kynikos Associates thinks that the chinese real estate bubble is unprecedented and that investors should be very careful about companies exporting to China`s construction sector:
"We are not calling for an impending crash of China or of the Shanghai stock market, but in particular the bubble that has been blown up in real estate both commercial and residential as well as other forms of fixed asset investment in china is unprecedented. I do see all of the signs of a credit induced real estate bubble that i think is going to be a doozy"
Jim Chanos said that if and when the bubble bursts, it will hurt the building materials sectors and the commodity plays in the western stock markets.
1 comment:
Japan in the 80s was analogous, however, MUCH much smaller.
Plus: when China collapses, it is a Sovjet-style economy that collapses, but without the USSRs natural resources to cushion the fall. So it's a "North Korean Japanese collapse of Chines proportions" ...
and it will finally send gold through the roof, I believe: Do we see a gold bubble?
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