James Chanos, The Big China Bubble

James Chanos, Kynikos Associates president/founder, discusses why his hedge fund is assessing current projects in China because of a slowdown of growth in the country. Jim Chanos has $6.7 million in assets under management. James Chanos unlike Jim Rogers , he has always been a bear when it comes to China and he explains why : " ...the cracks are spreading on the facade. that's a mixed metaphor, but our team was just over there. they just got back." Jim Chanos explains that he has not been personally to China but his team did " i've not been. i've been to Hong Kong. " " my team was over there. again, they're looking like for like, looking at the developments that they looked at a while ago. are there more buildings up, are they empty, are they occupied. but on top of that we're seeing a slowdown in residential sales with arguably declining sales, and you're seeing real estate firms shutter, real estate offers close down. some of the engines behind the boom is beginning to sputter. now, there's a lot of observers who believe there are only two speeds in china. hit the brakes or hit the accelerator. i'm not so sure in terms of what we've seen with the power outages, when there's no price mechanism to reflect real supply and demand, you're going to end up with things like shortages, and i think we're beginning to see some of the evidence of that. "