Economics
Carson Block Is Certain China Will Face Day of Reckoning
- Block says much of the value in Chinese assets ‘destroyed’
- Renowned short-seller advises targeting specific firms
Carson Block Sees 'Day of Reckoning' Ahead for China
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Carson Block said he will continue wagering against Hong Kong-listed companies on the view that a pullback in credit will send shock waves through the economy.
Block, the founder of Muddy Waters LLC, said in an interview that China’s credit problems since the global financial crisis will reach a breaking point. He blames this on Chinese officials cramming liquidity into the banking system, which allowed other players to pull their cash out, leaving the system increasingly vulnerable to collapse, he said.