John's Feed
May 28, 2013
via Breakingviews

Europe rightly throws shade on solar tariffs plan

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By John Foley

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

European opposition to tariffs on Chinese solar panels sounds like turkeys voting for Christmas. After all, China has used cheap state financing to lower the cost of making solar equipment – and European companies like Germany’s Solar World have borne the brunt. Yet the reluctance of most EU member states to back proposals for a punitive tariff is smart. In a world of cross-border supply chains, Europe has too much to lose by pushing the point.

May 24, 2013
via Breakingviews

China-U.S. audit truce wisely avoids big issues

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By John Foley

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

Deng Xiaoping used to say that ideological disputes were best left for future generations to solve. Audit authorities in China and the United States are wisely following the former Chinese leader’s advice. Their compromise on inspecting the audits of Chinese companies listed overseas, a non-binding memorandum announced on May 24, leaves the biggest questions unanswered. That’s exactly as it should be.

May 24, 2013

Breakingviews-Microsoft stages nebulous Chinese comeback

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

By John Foley

BEIJING, May 24 (Reuters Breakingviews) – Microsoft (MSFT.O: Quote, Profile, Research)
is staging a comeback in China. The world’s biggest software
maker hopes to use the twin technological disruptions of cloud
computing and mobile devices to get a second bite of a market
where profit has proved elusive. Yet the financial benefits may
prove no less hard to grasp the second time round.

May 22, 2013
via Breakingviews

Goldman trumps HSBC in financial Chinese chequers

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By John Foley

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

Who’s the smarter investor in China – HSBC or Goldman Sachs? The UK lender’s business in China has grown impressively. But based on their recent sale of stakes in two of China’s biggest financial groups, the Wall Street investment bank has the edge.

May 20, 2013
via Breakingviews

Alibaba’s next superlative: China’s top fee payer

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By John Foley

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

Alibaba’s initial public offering is going to be less about the forty thieves, and more about the fight for fees. The unlisted Chinese e-commerce giant is already an important source of advisory and financing revenue in a weak market. If a highly anticipated stock market listing comes to pass, it could become China’s biggest payer of fees to global investment banks in a decade.

May 20, 2013

Breakingviews: Alibaba’s next superlative: China’s top fee payer

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

By John Foley

BEIJING, May 20 (Reuters Breakingviews) – Alibaba’s initial
public offering is going to be less about the forty thieves, and
more about the fight for fees. The unlisted Chinese e-commerce
giant is already an important source of advisory and financing
revenue in a weak market. If a highly anticipated stock market
listing comes to pass, it could become China’s biggest payer of
fees to global investment banks in a decade.

Apr 25, 2013
via Breakingviews

Why Alibaba could be China’s next $100bln IPO

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by John Foley

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

Could Alibaba be China’s next $100 billion stock market listing? The Hangzhou-based e-commerce giant continues to be coy over when it will take the plunge. But sooner or later founder Jack Ma will need to offer some kind of exit for his backers, not to mention employees, and an initial public offering is the most likely solution. Now is a good time to start asking how the company should be valued.

Apr 8, 2013
via Breakingviews

China and the chaos theory of finance

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By John Foley

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

Will China have a financial crisis? And if so, would Chinese people be any worse off? The answers are not found in the country’s rapidly rising levels of debt, but in the potential for chaos when things go wrong. China is sliding further along the scale of chaotic financial systems, but is not yet in the danger zone.

Apr 3, 2013

Tencent’s troubles reflect monopolistic shift

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

By John Foley

BEIJING, April 3 (Reuters Breakingviews) – WeChat could be
China’s killer app – if disgruntled rivals don’t kill it off.
The smartphone messaging service, which has amassed 300 million
users in just over two years, has attracted the ire of mobile
network operators worried about their margins. It sounds like
vested interests squashing innovation. More likely, it’s old
monopolists fighting to keep out a new one.

Mar 28, 2013
via Breakingviews

China shadow bank curbs attack symptom not cause

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By John Foley

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

China is getting tough on shadow banks, but not on the causes of shadow banking. New rules will force mainstream lenders to cap their exposure to some of the riskier off-balance sheet products they have sold to customers – in particular, those that are effectively repackaged corporate debt. That limits a big source of risk for banks, but creates a new one for the Chinese economy.