Chanos Warns of Chinese Bubble (JJC)
By Benzinga Staff
March 03, 2010 11:50 AM
March 03, 2010 11:50 AM
James Chanos of Kynikos Associates, who has been bearish on China for a long time now, is predicting a Chinese downturn after "excessive" investment in both residential and commercial property.
Chanos, after observing unusually high prices in iron ore and copper, delved deeper to see where it was going. The verdict: China's construction boom. He now believes China is on the brink of a bursting bubble, which could effect previously aforementioned commodity prices as well as the greater Chinese economy.
iPath DJ-UBS Copper TR Sub-Index ETN (NYSE: JJC) is up $0.84 a share today to $47.17, continuing its climb since the earthquake in Chile. Chile is one of the world's largest producers of copper.
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