So, what's the next great short play? After the real estate mortgage-backed bond implosion, could there be another blockbuster of equal magnitude on the horizon? Esteemed short seller Jim Chanos, the man who had the foresight to short Enron, thinks he may have found it.

He's been a vocal critic China as of late, and he has raised $20 million for a new Caymans-based hedge fund. He has also launched an onshore version of the fund, which has not yet raised capital. Chanos calls the fund Kriticos--which is Greek  for 'judgment' or 'discernment,' according to FINalternatives.

Many people assume he will use the fund to continue making short bets on China, especially real estate in China. Basically, Chanos thinks the massive real estate construction boom underway cannot be sustained. Even in China, there aren't enough people to legitimately fill them. And when the construction boom busts, it will take the economy and lots of companies down with it.

He thinks an epic crash is just around the corner, and he's been quite vocal about it. Chanos is apparently willing to put client money where his mouth is.

He has a lot of detractors, of course, who often ask him, "What do you know about China?" There are obviously plenty of China bulls and massive amounts of long bets. But Chanos has proven the detractors wrong before. Just look at his Enron call, which people still gush about.

One issue here is how to make gargantuan bets against China. You can only short so much directly, and the possibility that the government will act to stem big stock falls can't be discounted. He may have to invent some new vehicles, not unlike certain collateralized debt obligations that real estate shorts had to pioneer to lay wagers.

For more:
- here's the article
- here's a Fortune article on his views on China

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