Home News Jim Chanos says this is the biggest investing story no one is talking about

Jim Chanos says this is the biggest investing story no one is talking about

by admin
0 comment

Amid all the fuss over Russia’s aggression in Ukraine and its efforts to curb inflation, investors are largely missing out on China’s big story, noted short-seller Jim Chanos said Wednesday.

China’s real estate market troubles war When Interest rate hikes aimed at curbing inflation.

But Chanos, who is known for his long history of betting on China, especially the world’s second-largest economy, said this is a major story with far-reaching implications, especially at a time when global markets are in a vulnerable position. said.

“If what’s happening in the world, whether it’s Russia or Ukraine or the central bank losing control, if it’s not happening now, I think it will reveal what happened to China’s property market. It’s a center for investors,” the Chanos and Co. founder said Wednesday at CNBC’s Delivering Alpha conference in New York.

The country is facing a crisis compounded by multiple factors, resulting in the worst decline in home sales since China began allowing private property sales in the late 1990s.

In an effort to stem the crisis, authorities cut five-year mortgage rates and one-year prime rates earlier this week, alleviating concerns builders had about private financing. The pandemic has exacerbated the problem, with the government’s zero-coronavirus policy hurting economic activity.

China apartment prices likely ‘behind government bonds’ [the] The world’s most important asset class. And they are declining,” Chanos said. of the Chinese economy. “

Evergrande, China’s second-largest property developer, default on dollar-denominated bondshas become a symbol of China’s real estate bubble.

But Chanos said the problem lies deeper.

“You have to understand that almost every big company in China has a property development sector, like in Tokyo, so it’s not just developers,” he said. “This is inherent in the whole economy there. I think we are ignoring it at our own risk.”

You may also like