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Dec 27, 2012
via Breakingviews

Weibo should tap the financial network in 2013

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By John Foley

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

Weibo is changing Chinese society, but can it change investors’ minds? The rambunctious social media site, where over 400 million of the country’s web users post, follow, share and criticise, could be worth multiples of what the market currently suggests. A partial spin off in 2013 could be a good way to unlock Weibo’s charms.

Dec 27, 2012

BREAKINGVIEWS: Weibo should tap the financial network in 2013

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

By John Foley

BEIJING, Dec 27 (Reuters Breakingviews) – Weibo is changing
Chinese society, but can it change investors’ minds? The
rambunctious social media site, where over 400 million of the
country’s web users post, follow, share and criticise, could be
worth multiples of what the market currently suggests. A partial
spin off in 2013 could be a good way to unlock Weibo’s charms.

Dec 10, 2012
via Breakingviews

China Inc helps AIG streamline, at a price

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By John Foley

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

Bob Benmosche is making AIG more aerodynamic – at a price. The U.S. insurer has agreed to sell its aircraft leasing business to a Chinese-led group for a valuation of $5.3 billion. AIG’s own shareholders will probably forgive their chief executive for the mean headline number and the lack of a clean exit, and focus on the fact that AIG is a step closer to independence from its government shareholder.

Dec 6, 2012
via Breakingviews

China shadow bank shakeout would be welcome

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By John Foley

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

A wealth product goes wrong; a bank blames a rogue employee. It sounds trivial. But in China, the crisis at lender Hua Xia could be the beginning of a shadow-bank shakeout. The country’s $2 trillion off-balance sheet financing channel may not stay off the balance sheet for much longer.

Dec 4, 2012
via Breakingviews

SEC learns true cost of China accounting goodwill

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By John Foley

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

China’s shaky accounting practices are a sound target for U.S. regulators. Or at least, they would have been ten years ago. The Securities and Exchange Commission’s action against China-based auditors, including affiliates of big accountants like KPMG and Deloitte who refuse to hand over files on U.S.-listed companies, comes too late. If the SEC pushes the point, it could bring a moral victory, but a financial mess.

Nov 26, 2012
via Breakingviews

China’s nemesis: bribes, banquets and backslapping

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By John Foley

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

Corruption is to China what bad weather is to Britain – a source of constant complaint, and a fact of life. But the rise of the Internet and slowing growth mean China can’t continue along its old path. Incoming President Xi Jinping and his chief graft-buster Wang Qishan have a chance to slay the beast. Enforcement, education and the market will be their most effective weapons.

Nov 15, 2012
via Breakingviews

China’s leadership line-up gets 6.5 out of 10

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By John Foley

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

The seven men who will run China’s ruling party for the next five years have a tough job. Two of them, party chief Xi Jinping and premier-in-waiting Li Keqiang, have been groomed for years, but even they are little known. Are they up to it? Breakingviews has scored them on five key criteria, and found some scope for encouragement.

Nov 14, 2012
via Breakingviews

China buzzword bingo shows slow move forward

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

China’s rulers give little away. So at the five-yearly Communist Party Congress, details matter, from the order the new leaders come onstage to the arrangement of portraits on the front page of People’s Daily. To see what’s on the mind of outgoing party leader Hu Jintao, there’s another option: buzzword bingo.

Nov 13, 2012
via Breakingviews

SOEs could be China’s economic vampire squid

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By John Foley

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

State-owned enterprises are China’s economic version of the giant vampire squid. The 20,253 industrial companies owned and controlled by the government soak up capital, and pay little out. Their costs are low and their bosses powerful. If China’s new leaders are serious about making households wealthy, they need to make these industrial giants behave more like normal companies.

Nov 8, 2012
via Breakingviews

How to make sense of China’s leadership line-up

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By John Foley

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

China’s big reveal of its top party leadership deserves careful reading. A day after the Communist Party congress ends on Nov. 14, a group of suited officials will take the stage, and China-watchers will try to make sense of who’s there and who isn’t. Xi Jinping is virtually assured the top spot; the rest are less certain. Here are five clues that the new line-up of the Politburo Standing Committee might offer about China’s direction in the next decade.