Friday, April 9, 2010

China Property Bubble

See this Bloomberg article reporting an interview with ace hedge fund manager James Chanos. He is not optimistic about the property market there. For example, he says:
The world’s third-biggest economy may need to keep up the pace of property investment because up to 60 percent of its gross domestic product relies on construction.
Describing China as being "on a treadmill to hell," Chanos concludes:
They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.
I particularly hope my friend Allan gets a chance to see this article.