Markets are approaching a meltdown similar to the global financial crisis in 2008, George Soros, one of the world’s most successful investors, said.
Soros said: “China has a major adjustment problem,” according to a Bloomberg News report.
“I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008,” Soros said in Sri Lanka.
His comments came as China suspended its benchmark CSI 300 stock index after just 870 seconds of trading.
The market plunged 5%, triggering a 15 minute circuit breaker. When that was lifted, the markets fell another 2%, halting trading for the day.
It’s the second time this week that China has had to shut its markets under the new rules, which are designed to avoid panic selling.
Soros is famous for his currency trading. He gained notoriety in Britain in 1992 after making $1 billion betting the UK would have to devalue the pound and leave the European Exchange Rate Mechanism.