Jim Chanos is negative on China. He has pushing this negative story for what seems like years. Bloomberg reported that he is shorting Vale the Brazilian iron ore company and other
commodity related firms selling into China. Vale reported sold 41
percent of production to China in the first quarter. This may be a more
effective way to trading China equity and economic risk than taking
short positions inside the country.
This
has strong implications for commodity markets if other traders are
going to follow the same path. Industrial metals prices will remain
heavy with China growth uncertainty.
No comments:
Post a Comment