The fallout from the Evergrande crisis could be “far worse” for investors in China than the collapse of Lehman Brothers was for the US.
Short seller Jim Chanos said the real damage would come because Evergrande’s troubles pointed to the end of the property-driven growth model in the world’s second-largest economy.
He added that Evergrande was only notable because it was the biggest of a bunch.
“All the developers look like this. The whole Chinese property market is on stilts,” said the founder of New York-based hedge fund Kynikos Associates, which is best known for predicting the collapse of energy group Enron.
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