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Chanos Unmoved by Chinese Banks’ Biggest Rally Since Jan.

The biggest monthly surge in Chinese banks since January isn’t enough to stop Jim Chanos from shorting the financial shares as the portfolio manager wagers the country faces a credit crisis as bad loans increase.

“You can’t look at a month and say that’s the trend, or something’s changed,” Chanos, who oversees $6 billion as the founder and president at Kynikos Associates Ltd., said in a Bloomberg television interview. Bad loans peaking at 3 percent, “seems awfully Pollyannic,” he said.