Chanos and Faber: China's Property Bubble To Burst This Year

More Chinese news today. Jim Chanos told PBS and Bloomberg that China’s property market is an bubble that may burst as early as this year.

Chanos: "The world’s third-biggest economy may need to keep up the pace of property investment because up to 60 percent of its gross domestic product relies on construction.

The bubble may begin to “run its course” in late-2010 or 2011"

Adding colorful words, he says that China is “on a treadmill to hell,”. He had previously said that "China is Dubai times 1,000."

“They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.”

We track all Chinese ETFs live here.

According to Bloomberg, the boom in China’s real estate has fueled concerns that China may face a collapse seen in Dubai that has hurt the ability of some of its companies to repay debt.

On his dire predictions Chanos, has been joined by Marc Faber, and Ken Rogoff (Harvard).

Adds Chanos: "Chinese state and local governments are among the most leveraged to property-related borrowings and the nation will “ultimately” have to nationalize a lot of the bad loans that will arise from the end of the bubble"