Hedge fund manager Kyle Bass shared his market views in an exclusive interview with CNBC's Andrew Ross Sorkin on Wednesday.
On China's banking system: "It's already reached a point where it's going to have a problem with losses. ... They have to recapitalize their banking system," he said.
On the U.S. economy: "2017 is going to be a year of increasing inflation and economic growth lagging. We're moving into a stagflationary environment in my view," Bass said.
Bass is founder and managing partner of Hayman Capital Management. He is known for profiting and betting against subprime mortgages during the financial crisis in 2008.
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