Hedge fund manager Jim Chanos has been warning investors for three years about a real estate crisis in China, and he told CNBC that the property bubble there is getting even bigger.
China's 'Ghost Cities' Warn of Property Bubble: Chanos
"You can't miss it," he said in a " Squawk Box " interview Thursday, referring to the so-called "ghost cities" of China.
They look like any other, but with one difference: No people. And in many cases, they feature miles and miles of empty apartments and office buildings.
This perpetual sprawl is needed to help fuel the $8 trillion Chinese economy, Chanos said, estimating that gross domestic product there derives half of its growth from construction.
Why China's Property Market Is Getting Scary
"Avoid anything having to do with the Chinese property market—steel, cement, iron ore," he advised, adding that he had been shorting those sort of plays.
Matthew J. Belvedere
Posted 8 March 2013
Follow Matt on Twitter @Matt_SquawkCNBC