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| Jim Chanos hate China so much |
Longest Bearish on China, Jim Chanos hasn't changed his tune. He thinks China's property market is on the verge of crashing.
Chanos has talked a lot about doom and gloom for China in the past. So why hasn't the economy collapsed yet?
Chanos claimed that the credit-fueled housing bubble isn't happening in cities like Shanghai and Beijing. So the magnitude of the problem often goes unnoticed by Western business leaders. Doing business in those cities is like going to New York on the eve of the financial crisis," Chanos said. But once one travels out into the country, "it sinks in on you what a large construction site China really is.
Although China's lending standards are pretty tight. Chinese buyers need to show proof of income and pay a 60% down payment when purchasing property. But Chanos countered that high down payments mean people are more likely to have their savings wiped out when the market bottoms.
And he said many home transactions are all cash, some of which stem from corrupt Chinese officials funneling illicit profits into housing. Chanos also took on Chinese corporations, saying many are riddled with accounting abuses and fraud.