Increasing Chatter About China Housing Bubble
The Fundamental Analyst submits:
Jim Chanos of Kynikos Associates guest hosted CNBC’s Squawk Box this morning and was once again vocal about the looming Chinese property bubble. He had an interesting anecdote, which I could not verify on any mainstream news sources, that a certain large property developer in China started offering a hefty 15% discount on it’s projects. Click below for the interview.
Chanos also noted that the Shanghai stock market has been a poor performer this year. Is the Chinese market signaling that something is up? The Shanghai index was the first to recover bottoming out in November of 2008 and then topping out in August 2009. Will the Shanghai market lead the world down? There is an increasing amount of of chatter around the Chinese property bubble. Investors would be well advised to keep an eye on developments in China as well as the ongoing dramas in Europe.