Charlene Chu Is the 'Rock Star' of Chinese Debt Analysis

[indythinker85]

Chanos is fan "We are big fans of her work," says James Chanos, one of the loudest negative voices on China. His hedge-fund firm, Kynikos Associates, started placing bets against China in 2009, when Ms. Chu was warning China's debt-led stimulus program, designed to counter the global economic crisis, could build into a debt bubble. http://online.wsj.com/article/SB10001424127887323423804579025353329689102.html I think this is the full GS interview referenced in the article http://www.valuewalk.com/2013/08/charlene-chu-interview-gs-china/

[indythinker85]

For eight years, until her resignation last month, Fitch banks analyst Charlene Chu has done just that, warning of the impending collapse of China’s debt-fuelled bubble.

Born and raised in America and a graduate of Yale, she has claimed in painful detail that China has embarked on an unprecedented experiment in credit expansion that far exceeds anything seen before the financial crisis that rocked Western markets six years ago.

Working out of Beijing, Chu has developed a reputation that has seen her hailed by some of the world’s most important money managers as a “heroine” and treated as a pariah by some within China’s financial elite.

In a country where the banks, even the largest, are not known for openness, Chu has warned since 2009 about a rapid expansion in lending that has seen something close to $15 trillion (£9.1 trillion) of credit created, fuelling a property and infrastructure boom that has no equal in history. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10611931/The-15-trillion-shadow-over-Chinese-banks.html

[SpecOps]

Very interesting analysis. It's hard to know what to make of all this doom mongering over China. I dont know enough about it and only have a small amount invested in a fund that invests in that area of the world.

 

The Chinese markets appear cheap on basic metrics such as P/E ratios