Jan 27, 2014 07:05 UTC

China falls prey to its own capital magnetism

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Capital is flooding into China, and central bankers are worried. It’s easy to see why: such problems aren’t supposed to happen in countries with strict capital controls. But China’s monetary magnetism is of the authorities’ own making. In trying to slow reckless lending growth, planners have created a huge arbitrage opportunity.

Jan 24, 2014 13:24 UTC

The “R” word becomes taboo for global elite

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By Chris Hughes and Rob Cox

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Spare a thought for the business and financial elite as they slide along the icy byways of the World Economic Forum in Davos. Life is undeniably picking up for them and it would be nice to say so. But the economic recovery has its winners and losers, and it looks bad to be a beneficiary at a conference whose overarching theme is “inclusive growth.”

Jan 24, 2014 04:54 UTC

Hong Kong investors see double with nightclub IPO

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By Robyn Mak

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Hong Kong’s nightclubs are attracting a different breed of partygoers: the city’s mom and pop investors. Magnum Entertainment, which operates three local clubs, saw its shares more than double on their debut on Jan. 23 in an offering which shattered records for retail demand. Novelty, rather than financials, is fuelling the hype.

Jan 23, 2014 05:38 UTC

Audit spat pokes hole in China’s financial edifice

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China’s legal grey areas have been a source of enormous wealth for investors. Now a U.S. judge is threatening to poke a hole in the entire edifice. The Chinese units of the world’s biggest four auditors face a six-month suspension from auditing U.S.-listed companies after the judge decided they wilfully refused to hand over documents on Chinese clients to U.S. regulators. It’s hard to fault his logic, but upholding the rules could bring a huge cost.

Jan 22, 2014 11:50 UTC
Edward Hadas

Pope’s “authentic” economics make sense

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Pope Francis is a Jesuit, a Catholic order which has traditionally, among other things, served the rich and powerful as teachers and confessors. At its best, a Jesuit education inspires the mighty to serve the lowly. The Pope’s address to the business and political leaders assembled at the World Economic Forum at Davos fits right into that tradition.

Jan 22, 2014 06:31 UTC

China’s capital flight may be banks’ next headache

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By Peter Thal Larsen

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Western banks’ next regulatory headache could be made in China. Most of the recent scrutiny of financial institutions’ business practices has come from the developed world – particularly the United States. But as Chinese citizens become more aware of the offshore wealth held by the country’s elites, banks are increasingly at risk of a regulatory backlash.

Jan 21, 2014 05:45 UTC

China’s growth slower but no more believable

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China’s GDP growth may be getting more sustainable, but it’s no more believable. The country’s 31 provinces are on course to report aggregate nominal GDP far in excess of the total central figure for 2013 – and not for the first time. Big numbers are getting less reliable, which strengthens the case for new ones.

Jan 20, 2014 14:44 UTC
Edward Hadas

Wealth Addicts Anonymous? It misses the point

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Sam Polk has seen the light. Once a derivatives trader who measured his income in millions of dollars, he quit for a new life. Now he reckons his extravagantly rewarded former colleagues should realise that they have a problem – an addiction to wealth. Writing in the New York Times, he suggests others join him to “form a group and confront our addiction together.”

Jan 20, 2014 05:50 UTC

Quitting China is all about knowing how to go

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By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

An increasing number of foreign businesses are folding their tents in China. Multinationals used to be desperate to get into the People’s Republic. Now, as easy growth vanishes, leaving China is becoming less unusual. While some have kept a foot in the door, others have made a show of slamming it.

COMMENT

China has changed its ways. As the Chinese nation becomes more nationalistic and less business friendly more companies will leave.

Posted by 1Jon | Report as abusive
Jan 17, 2014 04:55 UTC

China trust default is least painful option

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Much about China’s financial system is fuzzy, particularly when it comes to so-called trust companies. But when push comes to shove the case for letting an investment product fail is pretty clear.