Hedgie in sober warning: 'This is way bigger than subprime'

The Titanic

'A fairly remarkable phenomenon and I think kind of a frightening one'.

Hedge fund manager Paul Singer said that China’s debt-fuelled stock market crash may have larger implications than the U.S. sub-prime mortgage crisis, echoing warnings from fellow billionaire money managers Bill Ackman and Jeffrey Gundlach.

'This is way bigger than subprime', Singer, founder of hedge fund Elliott Management, said at the CNBC Institutional Investor Delivering Alpha Conference in New York in response to a question about China’s crash potentially affecting other markets. Singer said it may not be big enough to cause a global financial market conflagration.

Bloomberg News reports that China’s stock market has dropped from a June 12 peak wiping out almost $4tril in value in less than a month after investors who borrowed to buy shares had to unwind trades.

Markets tumbled even as President Xi Jinping’s government ramped up efforts to stem the rout, including preventing share sales of companies.

'China is a bigger global threat by far', Ackman said Wednesday at the conference. 'The Chinese stock market is a fairly remarkable phenomenon and I think kind of a frightening one'.

To access the complete Bloomberg News article hit the link below:

Billionaire Paul Singer: China Crash Is 'Way Bigger Than Subprime'

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