CHINA LONG & SHORT: The Tyranny of Numbers



If you think the credit numbers out of China over the past five years have been crazy, just wait for the next five. To maintain GDP growth at the current 7.5%, China needs to create new credit equivalent to replicating the entire US-listed financial system. By 2018, it will have built enough new apartments over the previous 15 years to potentially rehouse 55% of its population, will command 65% of the world’s cement production and 59% of its steel. The tyranny of numbers suggests it can’t be done. Within this report, we talk through those numbers and come up with a long/short strategy. With our Hong Kong SFC licence approved in principle, we look forward to putting some of these companies under the spotlight. For more information, please go to: https://gmtresearch.com/research/china-long-short/

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