Global markets are facing a crisis similar to the global financial crisis in 2008, and investors need to be very cautious, billionaire George Soros told an economic forum in Sri Lanka on Thursday.
Soros said: “China has a major adjustment problem. China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world ” according to a Bloomberg News report.
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His comments came as China suspended its benchmark CSI 300 stock index after just 870 seconds of trading.
The market plunged 5 percent, triggering a 15 minute circuit breaker. When that was lifted, the markets fell another 2 percent, halting trading for the day.
It’s the second time this week that China has had to shut its markets under the new rules, which are designed to avoid panic selling.
Soros is famous for his currency trading. He gained notoriety in Britain in 1992 after making $1 billion betting the UK would have to devalue the pound and leave the European Exchange Rate Mechanism.
Soros’s hedge-fund gained about 20 percent a year on average from 1969 to 2011, according to Bloomberg, and has a net worth of about $27.3 billion (Bloomberg Billionaires Index).