Tags: Biggs | China | Bears

Biggs to China Bears: You’re Wrong

By    |   Friday, 28 Oct 2011 01:35 PM

Some prominent investors, such as James Chanos, have shorted the Chinese stock market, saying the nation’s economy is ready to go from boom to bust.

Barton Biggs, managing partner at hedge fund firm Traxis Partners, disagrees.

“I’m loaded up on China. I think we’re beginning a run in China,” he tells Yahoo. “The Chinese market has been a lousy performer this year and last year. But I think it’s about to end.”
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Chinese authorities have sent out subtle but clear signals that they’re easing policy, such as rules for small and medium-size companies, Biggs says.

“Chinese authorities are signaling they’re taking their foot just a little off the brake,” he says.

Barton-Biggs200v1.jpg
Barton Biggs
“They aren’t ready to cut rates, which would really stimulate the economy, and increase fiscal spending. But they announced a big railroad building program again. They’re starting to stimulate the economy.”

So those betting against China better watch out, Biggs says. “I think there’s a huge volume of hedge funds and wise guys who think China is about to go down the drain. And I think they’re going to feel considerable pain.”

Some other investors apparently feel the same way. The Hong Kong stock market just had its best week in more than two years.

“It’s likely this rally will last until the end of the year,” Kirk West, director of international investments at Principal Global Investors, tells Bloomberg.

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Some prominent investors, such as James Chanos, have shorted the Chinese stock market, saying the nation s economy is ready to go from boom to bust. Barton Biggs, managing partner at hedge fund firm Traxis Partners, disagrees. I m loaded up on China. I think we re...
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2011-35-28
Friday, 28 Oct 2011 01:35 PM
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