John's Feed
May 18, 2015
via Breakingviews

China’s lodestar is not reform but avoiding chaos

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

China’s policymakers talk much of reform. What really drives them is something different: a fear of chaos. The treatment of the country’s local government debt pile is an example of risk aversion getting the upper hand. The strategy is imperfect, but also right.

May 11, 2015
via Breakingviews

China’s new monetary tool: quantitative teasing

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

While Europe eases, China merely teases. The People’s Republic cut interest rates on May 10 for the third time in six months, responding to poor economic data and a corporate sector saddled with high debt. Making money cheaper is fine as it goes, but less dramatic than making it more abundant via quantitative easing. That can come later.

May 11, 2015
via Breakingviews

China’s new monetary tool: quantitative teasing

Photo

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

While Europe eases, China merely teases. The People’s Republic cut interest rates on May 10 for the third time in six months, responding to poor economic data and a corporate sector saddled with high debt. Making money cheaper is fine as it goes, but less dramatic than making it more abundant via quantitative easing. That can come later.

May 6, 2015
via Breakingviews

Yum Brands China split short on crispy goodness

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

For Yum Brands, fast-food heaven is 1.4 billion consumers with rising wages and little regard for the fat and sugar content of their food. Activists have suggested a spin-off of the KFC and Pizza Hut parent’s China stores could release crispy goodness for shareholders. A new Breakingviews calculator shows that’s possible, but depends on the company taking greater risks.

May 1, 2015
via Breakingviews

Review: Hank Paulson’s kiss-and-don’t-tell China guide

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

Hank Paulson’s two decades of negotiations with China have left him with a wealth of anecdotes, presumably a sizeable stack of air miles and a new book, “Dealing With China”. Paulson shows himself a master of two rules of doing business in the People’s Republic: cultivate contacts like crazy, and know when to leave the killer details unspoken.

Apr 30, 2015
via Breakingviews

Banks are designated drivers at China market party

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

If China’s stocks are partying at the punch bowl, then its banks are nervously jangling the car keys in the kitchen. Share prices of the big lenders have lagged the wider market during its recent run-up. Based on their performance in the first three months of 2015, investors’ sober view is the right one.

Apr 30, 2015
via Breakingviews

Banks are designated drivers at China market party

Photo

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

If China’s stocks are partying at the punch bowl, then its banks are nervously jangling the car keys in the kitchen. Share prices of the big lenders have lagged the wider market during its recent run-up. Based on their performance in the first three months of 2015, investors’ sober view is the right one.

Apr 28, 2015
via Breakingviews

China SOE fusion could topple cult of competition

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

A mooted plan to crunch together China’s biggest state-owned companies looks bad for efficiency. But when genuine competition isn’t on offer, a demanding shareholder and superior regulators might be the next best thing.

Apr 27, 2015
via Breakingviews

China frothy markets churn up funding opportunity

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

China’s debts worry the world, so a recent rush towards more equity-raising by Chinese companies sounds like a good thing. If investors were more discerning, it would be.

Apr 27, 2015
via Breakingviews

China frothy markets churn up funding opportunity

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

China’s debts worry the world, so a recent rush towards more equity-raising by Chinese companies sounds like a good thing. If investors were more discerning, it would be.

    • About John

      "John Foley is Reuters Breakingviews' editor for Europe, the Middle East and Africa. He relocated from Beijing in July 2015. John established Breakingviews’ Hong Kong bureau in 2009, and has written on China’s economy and financial system, mergers and acquisitions, capital markets and consumer goods. Follow John on Twitter @johnsfoley"
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