Watch the Short Interest

In an article entitled “Contrarian Investor Sees Economic Crash in China,” published last week in the New York Times, reporter David Barboza describes James Chanos’ negative views on the China economy. Mr. Chanos is a renowned hedge fund investor who made his fortune through short selling and China is his latest target. Unlike the conventional wisdom, Mr. Chanos believes “that China’s hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict.”

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