China’s cyber crackdown: A guide for the perplexed

April 24, 2015

The People’s Republic is squeezing technology companies. New banking rules and counter-terrorism legislation could make it harder for foreign groups to operate in the expanding market. Is security just an excuse to protect domestic players? Breakingviews cracks the code.

China’s road to West is paved with bold intention

April 20, 2015

President Xi Jinping is expected to sign off on a $46 billion corridor between Western China and Pakistan. The transport link may end up as a security nightmare. But the lure of bringing Europe closer and countering India’s clout in South Asia makes it a tempting idea.

Sliding prices vindicate China’s growth worries

April 20, 2015

New moves to get banks lending more show the authorities are worried that growth may miss the official target of 7 percent. Look closer at what’s happening to prices and there is good cause. China’s slowing growth is close to being too slow.

Lightness of China growth is short of unbearable

April 16, 2015

Not only has GDP expansion in the People’s Republic slowed to a post-crisis low, but growth is also increasingly “import-lite.” Fortunately, the mainland has good reasons for not choosing a weaker currency as stimulus. That could turn world’s discomfort with China into pain.

China’s stock market is poor proxy for its economy

April 15, 2015

GDP growth is the slowest in six years, yet shares are at seven-year highs. The disconnect is partly because equity plays a small part in financing business. Though that may eventually change, the link between stocks and the broader economy may still remain hard to pin down.

China index: Economy springs back, for now

April 13, 2015

Breakingviews’ alternative gauge of activity recovered slightly in February to its highest level since last spring. Chinese New Year celebrations and a bump in exports gave the economy a temporary boost to offset falling steel production, rail freight volumes and truck sales.

China’s answer to Uber may be worth more than Uber

April 13, 2015

Twin taxi-hailing apps Didi and Kuaidi Dache may be worth $14 bln – twice their last reported amount – a Breakingviews calculator shows. They could even close in on the $40 billion valuation of Uber itself. All hangs on what passengers will pay for something they now get free.

Review: China fails to live up to luxury hype

April 10, 2015

After a decade of red-hot growth, prospects have dimmed in luxury’s star market and given pause to high-end brands. With vigor returning to traditional hubs like the United States, a prediction that Chinese shoppers are establishing a Bling Dynasty looks premature at best.

Hong Kong stock boomlet tests China’s capital dam

April 9, 2015

A trickle of Chinese money pouring into Hong Kong stocks via a new trading link has turned into a flood. The arrival of mutual funds is a factor, but a bigger one is speculation on the wall of money bursting to get out of the mainland. The dam is sturdy, but pressure is building.

Why silencing short-sellers is futile

April 8, 2015

Asian companies and regulators are coming down hard on authors of negative research reports. Though it’s possible to track down even anonymous assailants, it’s tougher to prove the attacks were wrong or reckless. Executives have little choice but to face up to their critics.