Jim Chanos: China Is Going To Have Real Problems In Real Estate

Jim Chanos, the founder of Kynikos Associates, talked with CNBC regarding his current views on China’s economy.

Jim Chanos puppeteer

Chanos explained that just like the Europe and the U.S., it’s not that easy to control the complex 1.3 billion people economy. Concerning with the low Chinese inflation number, Chanos said it “is actually developer missed a big payment to another developer.” He believes in China, 70% of the economy is construction and 5% is exports. People are completely misguided when they worry about China’s economy. “China is going to survive all this,” said Chanos, “but they are going to have real problems in the sector that is the largest part of their economy.”

Chanos said there is a real estate bubble in China, and the banking system isn’t ready for this. “this is a homegrown problem i think for china. how to navigate through this giant bubble and transform the economy to a consumption led economy.”