China May ‘Crash’ in Next 9 to 12 Months, Faber Says

[marmar]

China May ‘Crash’ in Next 9 to 12 Months, Faber Says (Update3)
By Shiyin Chen and Haslinda Amin


May 3 (Bloomberg) -- Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy,” Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen,” he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.

“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong today. “The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”

An index tracking Chinese stocks traded in Hong Kong dropped 1.8 percent today, the most in two weeks, after the central bank raised reserve requirements for the third time this year. The Shanghai Composite has slumped 12 percent this year, Asia’s worst performer, as policy makers seek to rein in a lending boom that’s spurred record gains in property prices. China’s markets are shut for a holiday today. ...........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601010&sid=aMbfBKW.uKn4

[leveymg]

1. Yes, but they have half the money in the world to support asset prices, and will.

The Saudis have the other half, but were smart enough to avoid diversification.

We're tapped out, baby. One more shock will break the bank.

[xchrom]

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