With growth slowing, particularly in the real estate sector, Chinese banks have been a great place to bet against, hedge fund titan Jim Chanos told CNBC.
Some quotes:
“If you looked at the performance of the banks over the last two years…they have been great shorts,”
“They have been going down — they’re down 30 percent over the last two years.”
“I would believe it when I see it to break up the banks.”
“In China, remember, the the banks are arms of state policy. They loan because the local party official or regional party official tells them we need a new stadium. They are instruments of state policy. I really doubt the party is going to give up a lever of power by breaking up the banks.”
About Chinese politics and the purge of Bo:
“Some people have dubbed the party ‘The Family,'” said Chanos, comparing the communists to the American Mafia. “We’re seeing more than a peek behind the curtain, we’re seeing a real struggle.”
Full video below:
Visit msnbc.com for breaking news, world news, and news about the economy
