industrial average 2% across the board and in the russell's case, a greater than 3% let's welcome in jim chanos. he's been talking about a bubble in china's property market since january of 2010 and has been short several chinese financial institutions with exposure to the real estate sector for many years. jim, welcome >> hi, scott how are you? >> good. you've been negative as most people know, on china, for a very long time at times that bet has looked very bad at times, it has looked very good is this now your moment? how are you thinking about this developing story >> so our call on china as you mentioned went back to the end of '09, beginning of 2010. and really, it was based on what we're now seeing, which was the questioning the economic model of the people's republic of china. and all the knock down effects it had because it's an economic model that is still to this day relied on real estate and real estate investment to drive growth and it went from, you know, pretty much the ridiculous to the sublime over the past 12 years and you now have china having property as residential property

remember jim chanos was with us yesterday? he said that stock should be 40 or 50 bucks. benthal weighed in, stephanie is next. fedex, someone is buying that stock after the numbers and you'll hear from that person and c numbers's delivering alpha is back september 29th bringing together the biggest names in the investment community you can register tayod delivering alpha.com we'll be right back. [uplifting music playing] ♪ i had a dream that someday ♪ ♪ i would just fly, fly away ♪ ♪ ♪ >>> wynn should be trading in the 40s right now based on where wynn macao is and where wynn bet is and at a multiple to where a las vegas sands was bought out to a u.s. operations at about $6 billion. we think the operations is the same about $6 billion. if you put all of those numbers together you get a number south of 50 bucks. >> that was short seller jim chanos yesterday on this very program telling us why he thinks wynn resorts is a $40 to $50 stock. it's now your turn, stephanie link what do you think about what mr. chanos had to say about a position that you have >> let's talk about

allowing it to proceed, not the side that would lean against and stop the clock although, again, jim chanosned us last hour we have seen the story four times in the last decade and each time they've gone back to a property-fuelled expansion and maybe they will this time around >> yeah. i don't think they can risk the contagion. you know, right now from what we hear there's about four or five other real estate companies that are feeling the contagion right now as well as some of the banks. they can't afford to, you know, as we go into 2022 they have the olympics, they have their elections, they can't afford for this to spread and become a contagion. they need to stop this and stop it now >> they may need to stop it now. final question on this but if people are saying this whole property companies -- again, some of the biggest companies in the world if you go back, certainly the biggest property developers, they're saying they are too big to fail, they will be bailed out by the government, so forth those are not comments china's leadership wants to see. they've gone after every big tech compa

what is going on with evergrande even though people like jim chanos and others worry about this spreadingnd could come to the united states, so far the market is not of that view. a couple things quickly before we get to washington developments they're looking for in evergrande, whether it will pay a u.s. bond payment, really a cash note if you will. whether it guys is going to pay on that interest. if you don't make a payment that could signal a default you heard so much about. that does not seem to be a pressing worry about the markets. much more focused on a very supportive federal reserve. now robust news out of companies including sales force and darden that dramatically surprised with guidance and numbers. that is washington right now as you're looking at a 10-year note in and out of 1.40%. one of the things we're focusing on is the chaos that still undo all of this in washington because they're trying to move on a variety of fronts here and simultaneously. easier said than done. at issue is the planned vote on monday we were told that would come for that bipartisan infrastructure p

we'll speak exclusively to two investors you do not want to miss jim chanos has warned of a bubble inor more than a decade and has been betting against several of the company's financial institutions we'll get an update from him citron's andrew left got

kind of control over the economy marko, what would your advice be to investors you know, we had jim chanosterday who pointed out china has not performed well if you look over the past decade. if china's market broadly speaking did not perform well over a decade in which it evolved more towards capitalism, how should we expect it to perform if it is evolving away from that, back towards something more socialist and communist as this reporting suggests >> you know, in emerging markets it is dangerous to equate gdp growth with equity performance in fact, it is not a good guidance at all. i think it is going to be -- it is going to continue to be challenging to generate returns in china at the same time the people who are likely going to do the best job at it will be onshore managers there's still uncorrelated alpha to be generated in onshore markets. one thing that i would say, so i don't disagree with has been said, but iwould say that it i ironic that what is happening with evergrande is not actually part of the common prosperity writ at large. what i mean by that is that here is china tryi

. >> later today on the halftime do not miss an interview with short seller jim chanos talking about:00 p.m. eastern time dow is down 515. we're back in two minutes. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels. our planet offers countless sources of energy. but it's only human to find the ones that could power a better future. >>> welcome back i'm ra hel solomon here is your update at this hour in utah after missing for weeks a body believed to be that of gabby pitino was found sunday. human remains were discovered at a camp site near grand teton national park. a cause of death has not been determined in florida investigators continue their hunt for pe tito's fiance named a person of interest in her disappearance and hasn't been seen since tuesday. >>> russia, a gunman opened fire at a university monday killing six people and leaving 20 others injured. according to the university, the gamm

neil: it wasn't that long ago, matt, jim chanos, of course the big hedge fund player, there are lotsout there, it is just the biggest but a whole bunch of them out there on the verge of going belly-up. is that true? >> you know china has had for 20 years a development model that drastically encouraged you know, the property sector and developers are heavily indebted and now the government is trying to get a handle on that. really over the past 10 years they are trying to get a handle on it. what happened, they tightened the leverage, tightened constrain the banks, tried to constrain the developers and the shadow lending but then you run into the risk where the overall economy can slow down if the financial system is strained. that is very much coming into view today. when that happens they have to back off. they have to ease monetary and fiscal policy. then they enable that same kind of property bubble to continue. so i think the problem that is before them whether xi xinping who as you know is kind of seizing a whole bunch of power to himself and returning china to a very autocratic

we should also mention, don't miss hedge fund giant jim chanos on the halftime report later today. >>on evergrande is allianz advisor mohamed el-erian he's also the president of queens college cambridge good morning to you. i'll ask you the question we've all been asking all morning, which is, is there a real prospect here of contagion >> we're seeing it already, andrew we're seeing it because what's happening in china is shaking key tenets of this global investment theme it's easy to say the chinese government is trying to strike the balance between on the one hand punishing excessive risk taking and the on the other hand not having a systemic event. that's easy to say to do is much harder what that results in, people are questioning one of the tenets, which has been the government will always stand behind the financial sector it's not not at least as yet. now add to that what has been an attack on various sectors, big tech, education, i mean the list is long, as you know it's shaking this notion that china is an investable market. >> but i guess the question is, is it that it's not