Economics
Chanos Undeterred by China Growth as O’Neill Bullish
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China’s improving economic growth is unconvincing to Jim Chanos, the founder of Kynikos Associates Ltd., who is maintaining bearish bets on the nation’s banks.
“My caution is related to the credit-driven model,” Chanos, who predicted the collapse of Enron Corp. in 2001, said on a panel moderated by Tom Keene at the Bloomberg Markets 50 Summit in New York. “If you grow new credit by 30 percent to 40 percent” of gross domestic product a year, it’s not difficult to reach the government’s expansion target, he said.