China's debt bomb

By Katie Benner June 28, 2011: 10:41 AM ET
(CNN Money)

As the world watches the Greek credit crisis unfold, a Sino-debt disaster is brewing halfway around the world.

Jim Chanos, the hedge fund manager who is famously shorting China, told Fortune late last year that the country was "embarking on something unprecedented." He was referring to the massive construction boom that has been underway for years, and that was supercharged by a 2008 stimulus package that pumped four trillion yuan ($586 billion) into the economy. In his opinion, the speculative bubble in real estate would end in a big pop, empty buildings, and pain for the country's broader economy.

For those who side with team Chanos, data is seeping out of China that suggests that he may right.
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