WYNN - Kynikos' Jim Chanos: Evergrande shows fragility of China's economic model

Famed short-seller Jim Chanos said Monday that the debt crisis facing China-based property giant Evergrande (OTCPK:EGRNF)(OTCPK:EGRNY) highlights the "fragility" of the Chinese economic model, which he argues is "off-the-charts" reliant on real estate. In an interview with CNBC, Chanos, founder and managing director at Kynikos Associates, contended that an Evergrande default does not present a major risk for the U.S. financial system. However, Chanos called the Chinese government's response to the Evergrande situation a "critical moment" to see how it will handle any potential bailout. The Kynikos founder asserted that the entire relationship between U.S. investors and China needs to be re-examined, underlining the complex financial structures necessary to create U.S.-listed stocks out of operating companies in China. "This is all an artifice that Western investment bankers and companies have put together to raise money in the West," he said. "You don't own those assets. ... The money only goes one

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Kynikos' Jim Chanos: Evergrande shows fragility of China's economic model