China off limits for investors

SINGAPORE – China is off limits for some of the world’s big investment managers because of its corporate governance and policy issues while for others, the technological advances in the world’s second biggest economy offer unbeatable opportunities.

One of the most notable views expressed by fund managers at the Reuters Global Investment 2018 Outlook Summit belonged to legendary short-seller Jim Chanos, of Kynikos Associates.

The hedge fund, he said, had stepped away from betting on China for the past year and a half.

Mr Chanos, who has for long warned about the heavy levels of debt in China, said that for all the excitement over President Xi Jinping cementing his power at last month’s 19th Communist Party Congress, the fundamental situation was unchanged.

“The debt story and the economic model story is exactly the same,” Mr Chanos said, speaking at the Reuters summit in New York this week.

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