Hendry: Next market crisis will be in China

Eclectica's Hugh Hendry has warned investors taking big bets on China are in line for huge losses, while Asia will be the focal point for the next market crisis.

In his April fund commentary, the hedge fund star said he is more pessimistic on Chinese growth than ever, and he expects the slowdown could have a knock-on effect on Japan in particular. Hendry said the bull market looks like it has already passed in China, and investors still backing the country are taking a major risk. "Those taking big bets on several more years of rapid Chinese investment growth are vulnerable to big losses," he said. "It is not my intention to scaremonger. I simply wonder why at this juncture one would consider buying stocks too exposed to Asia and in particular...