In China, private credit is state credit and that's one of the things we have to be careful about with credit numbers in China. Because at the end of the day, we've already recapitalized the Chinese banking system twice in the last fifteen years. My guess is it's going to have to be recapitalized again after this latest spate of lending. And Western investors historically don't do well in those recaps. So, I think you buy these securities in Hong Kong at your own risk.
~Jim Chanos, founder, Kynikos Associates, CNBC "Squawk Masters", May 18, 2011
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