Europe Economy

China's Economy May Contract: Hendry

CNBC.com
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There is a big chance that the Chinese economy will contract, as exports are falling because of the financial crisis that has gripped Western economies, Hugh Hendry, chief investment officer and partner at hedge fund Eclectica, told CNBC.

"The world super-sized itself. The world seemed to be enormous, seemed to be a giant. China built a productive capacity to serve a world that doesn't exist," Hendry said.

Figures showing that China's economic growth was relying mainly on domestic development should be taken with a grain of salt, he added.

"Asian economic figures are very bad, and Chinese economic figures are particularly bad," Hendry said.

"We consume, they build it," he added. "If we don't consume and they build it, they have a problem."