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"I
think their recent small devaluation could be the beginning of a
larger one," Ackman, who runs Pershing Square Capital
Management, told Fox Business Network in an interview.
"I think they could solve a lot of their problems by letting
their currency depreciate. And I think ultimately that's where
they're going to end up," the activist investor said, according
to excerpts of the interview.
Economists have said weaker trade data might prompt more easing
after the country devalued the yuan on Aug. 11. The surprise
move caused huge ructions in financial markets across the globe
and spurred large losses across the hedge fund industry.
Ackman's Pershing Square LP Fund took a 7.7 percent hit in the
aftermath, but on Tuesday he told Fox he was still "bullish" on
China over the long term.
Ackman's biggest investments, including Valeant Pharmaceuticals
and candymaker Mondelez, are based in North America but sell
their goods in China. Speaking about chocolate and chewing gum,
which Mondelez sells, Ackman said: "It's sort of the luxury,
small ticket consumption, the kind of thing I think will do very
well in China over the long period."
(Reporting by Svea Herbst-Bayliss and Michael Flaherty; Editing
by Ken Wills)
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