'Full Banking Collapse': China Worries Pile Up As Hedge Funder Sounds Alarm
Portfolio Pulse from Aaron Bry
Kyle Bass, CIO of Hayman Capital Management, warns of a 'full banking system collapse' in China, citing over $13 trillion in local government debt, with 90% in default, and $4 trillion in real estate losses. Chinese stocks like Alibaba (BABA) and JD.Com (JD) have significantly underperformed in 2023, with BABA down over 20% and JD down over 50%, while the S&P 500 is up nearly 20% year-to-date.
December 08, 2023 | 9:54 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Alibaba Group Holding Ltd-ADR (BABA) is down more than 20% year-to-date amid concerns of China's economic outlook and potential banking system collapse.
The negative sentiment surrounding China's economic stability and the potential banking collapse, as highlighted by Kyle Bass, is likely to continue to impact investor confidence in Chinese companies like Alibaba. The year-to-date performance already reflects a bearish outlook, and the recent comments could exacerbate the downward pressure on BABA's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
JD.Com Inc (JD) has underperformed with a decline of over 50% year-to-date, influenced by the broader concerns of China's economic challenges and banking sector issues.
Similar to Alibaba, JD.Com is facing the repercussions of the negative economic news from China. The substantial year-to-date decline in JD's stock price is indicative of the market's reaction to China's financial difficulties. The alarm raised by Kyle Bass regarding China's banking collapse could further dampen investor sentiment and put additional pressure on JD's stock in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80