Photo: Bloomberg Television
Wall Street legend Barton Biggs is famous for saying he was “maximum bullish” on Asia back in 1993, a statement that sparked a bull run in the region at the time. Despite all the chatter about a Chinese hard-landing, Biggs told The Edge Singapore that he is still bullish on China.
He also singles out Jim Chanos, saying that he and other China short-sellers don’t understand what’s really going on there. From The Edge Singapore:
Look, I am in China in a big way. I am still bullish on China. I do not think we are in for a hard landing at any point soon because the Chinese have very artfully managed a soft landing. I see the Chinese economy growing 7% to 8% or 8.5% for the next five or six quarters. Coming out of this challenging period for the world economy, I believe the Chinese economy will accelerate again moderately. I believe Chinese stocks are still very cheap. You can buy some really good Chinese companies that have good growth at very reasonable valuations right now. I think some of the investors in the US and Europe led by the likes of [hedge fund manager] Jim Chanos [of Kynikos Associates] and all the ‘sell short China’ people have been very negative about China without trying to understand what’s really going on there. I am looking forward to the day when we run into these shorts and make some money.