“Bubbles are best identified by credit excesses, not valuation excesses. And there's no bigger credit excess than in China.” BiggerChinaCreditExcessBubblesValuation Author:James Chanos
“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.” NeedsStatesRememberPartyPolicyArmsInstrumentsChinaLocalsOfficialsLoanStadiums Author:James Chanos
“Increasingly, the real estate developers can't get bank loans for their project financing in China. They're now going into the Hong Kong market to raise money in the bond market at very, very high rates, as high as 15, 20 percent.” RealProjectsPercentRaisesRateChinaEstatesLoanFinancingHong KongDevelopersBond Market Author:James Chanos
“Our concerns about what we saw in Australia: an economy clearly tied to China has hitched its wagon to the tail of the tiger. In terms of the general complacency, what we heard over and over from investors and clients and potential clients is, 'yes, yes, there are some excesses, but the government will figure out a way.” WayGovernmentTermEconomySawsHeardFiguresConcernChinaAustraliaInvestorsExcessTiedClientsTailsTigersComplacencyWagons Author:James Chanos
“The Chinese banking system is built on quicksand and that's the one thing a lot of people don't realize. [...] Everybody seems to think it is a free and clear open checkbook. It's not. [...] The banking system in China is extremely fragile.” PeopleThinkingSeemsRealizingClearOne ThingBuiltChinaChineseFragileBankingBanking SystemQuicksand Author:James Chanos
“The interesting thing about the China story, getting back to the macro and micro, and as dire as I think the macro story is - due to bad credit and credit extension that makes Greece and Spain and the U.S. look like child's play - when you get to the micro of individual companies, they look even worse.” ThinkingLooksChildrenPlayStoriesIndividualInterestingCompanyChinaCreditDuesExtensionsSpainGreeceInteresting ThingsMacro Author:James Chanos
“What people don't realize is that China papered over its last two credit bubbles, those in 1999 and 2004. The banks were never bailed out - they just exchanged their bad loans for questionable bonds from quasi-state organizations.” PeopleTwoStatesLastsRealizingOrganizationChinaCreditOver ItBubblesLoanQuestionable Author:James Chanos
