Jim Chanos says that there is a bit of a banking crisis happening right now in China with rates skyrocketing.
Chanos notes that every three to six months another problem with the banking system in China pops up.
He thinks that the credit-led investment boom driven by China is in jeopardy because of these banking problems. That creates opportunity for him to short companies like Caterpillar that require spending from China.
He also thinks investors should avoid hard industrial commodities.