Xie: Chinese stocks are a Ponzi scheme

Former Morgan Stanley Chief Asia Economist Andy Xie says the Chinese stock market is still in "deep bubble territory", noting that the Shanghai Composite Index would have to fall another 25 percent to get to fair value.

Click to play in a new window

He also noted that real estate sales account for 10 percent of GDP and half of all local government revenue. Earlier today, China's stock market fell seven percent, the sharpest decline since June 2008, and is now down about 23 percent from the early-August peak.

ooo