Lingering concerns about China have helped drive stock selling, but investors may still underestimate how much the world's second-largest economy has slowed, short seller Jim Chanos said Friday.
"It's worse than you think. Whatever you might think, it's worse," he said.
Chanos, of Kynikos Associates, appeared on CNBC's "Fast Money: Halftime Report" on Friday amid the fourth straight day of losses for major U.S. averages. The Dow Jones industrial average, S&P 500 and Nasdaq were setting up for their worst weeks since 2011.
He did not classify the drop as a correction or a bear market. But he noted that the yearslong runup in U.S. stocks shows "we've gotten a little complacent."