Investor Kyle Bass has reiterated his predictions that a China banking crisis and currency devaluation will come within the next two years: “It’s a foregone conclusion but we don’t know about the timing; it feels like it’s happening as we speak,.” His reasoning is that "Chinese corporate bond market is freezing up. Since April 11 the Chinese corporate bond markets had 150 cancellations out of 210 announced deals,” and while there are parallels to what happened in the US in 2008 and the Plaza Accord in 2010, Bass believes China's problems are a magnitude larger, and there is no way out for the Chinese government, which is grappling with managing the devaluation as much as it can.
Investor Kyle Bass has reiterated his predictions that a China banking crisis and currency devaluation will come within the next two years: “It’s a foregone conclusion but we don’t know about the timing; it feels like it’s happening as we speak,.” His reasoning is that "Chinese corporate bond market is freezing up. Since April 11 the Chinese corporate bond markets had 150 cancellations out of 210 announced deals,” and while there are parallels to what happened in the US in 2008 and Europe in 2010, Bass believes China's problems are a magnitude larger, and there is no way out for the Chinese government, which is grappling with managing the devaluation as much as it can.