Soros sees signs of 2008

“In addition to my people connected to the Open Society Foundation, my investment person is also in Sri Lanka to look for opportunities”, George Soros, a global investor and Founder Chairman of Open Society said.

“China has a major adjustment problem”, Soros said, according to Bloomberg Business. China is responsible for 17 per cent of all the world’s economic activity, so any downturn in spending there affects the rest of the world, experts say.

Interest rates in the United States going to positive territory the trends may get stronger, he added.

China’s market regulator on January 7 extended restrictions on big shareholders selling stocks, on whom a ban had been due to expire at the end of the week, as trade was suspended in the morning following a seven percent plunge.

Many economists and policymakers in the U.S. also has a tendency to blame China for many troubles and try to push up its currency claiming that is manipulating the currency.

Thirdly, the weaker Yuan is a problem for Corporate China due to the large amount of dollar-based debt they’ve taken on over the past few years that is now getting more expensive to honor by the day. A stock market crash that began in the country last summer has thrown the vast difficulties officials are now facing into sharp relief. Data this week reinforced a sluggish manufacturing sector.

Marc Ostwald, a strategist at ADM Investor Services, believes that Soros’ comments – alongside a gloomy report Wednesday from the World Bank – only serve to cast a “long shadow” over global markets.

The current environment reminded him of the 2008 crisis.