real-time news and commentary for investors
Tuesday, Sep 17
Chanos remains bearish on China and those that supply it
- Don't draw any conclusions against the sale of his entire stake in JPMorgan (JPM), Jim Chanos tells Bloomberg. It was a hedge against his shorting of a number of Chinese banks (ETF: CHIX). He reminds he's still long Citigroup (C) against the Chinese shorts. "Our business is still shorting ... China has been a bright spot."
- Having said that, Chanos is finding himself enamored of a tech stock he originally purchased as a hedge: Samsung (SSNLF.PK, SSNGY.OB).
- Back in China, Chanos says the country's credit system has "gone crazy" - new debt is growing at 30-40% of GDP per year vs. about 10% nominal GDP growth (and Chanos doesn't buy the GDP numbers). Other than Chinese banks, Chanos remains short CAT along with a number of others which benefitted from the global materials boom. Two names he mentions are Australia's Fortescue (FSUMF.PK) and VALE.
- China ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.