John's Feed
Apr 9, 2015
via Breakingviews

Hong Kong stock boomlet tests China’s capital dam

Photo

Hong Kong Exchanges and Clearing Chief Executive Charles Li speaks in front of the logo of HKEx in Hong Kong. REUTERS/Bobby Yip

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

Mar 31, 2015
via Breakingviews

China housing rescue uses right tool for wrong job

Photo

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

Chinese homebuyers can now get bigger mortgages more easily. The question is why they would want to. It is going to require a change to expectations, not just to the availability of debt, to arrest the housing slump that threatens the country’s economy growth.

Mar 25, 2015
via Breakingviews

Good news: China’s bad debts are on the rise

Photo

A bank clerk counts Chinese yuan banknotes at a branch of Industrial and Commercial Bank of China in Huaibei, Anhui province, June 8, 2012. REUTERS/Stringer

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

Mar 19, 2015
via Breakingviews

China’s capital flight lands on New York doorsteps

Photo

Lower Manhattan is seen just after sunrise from the observation deck of the Empire State Building in New York April 16, 2014. REUTERS/Brendan McDermid

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

Mar 19, 2015
via Breakingviews

China’s capital flight lands on New York doorsteps

Photo

Lower Manhattan is seen just after sunrise from the observation deck of the Empire State Building in New York April 16, 2014. REUTERS/Brendan McDermid

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

Mar 6, 2015
via Breakingviews

Chinese FX intervention could be due a comeback

Photo

By John Foley

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

China’s currency is entering a difficult third age. During the first one, which lasted over a decade, a weak yuan helped bring in export revenue. More recently, a strengthening currency helpfully sucked in capital. Now, with trade and confidence under pressure, China faces some hard choices over which it wants more. Premier Li Keqiang opened the annual parliament on March 5 by pledging more exchange rate flexibility, but also stability. The two aren’t necessarily compatible.

Mar 6, 2015
via Breakingviews

Chinese FX intervention could be due a comeback

Photo

By John Foley

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

China’s currency is entering a difficult third age. During the first one, which lasted over a decade, a weak yuan helped bring in export revenue. More recently, a strengthening currency helpfully sucked in capital. Now, with trade and confidence under pressure, China faces some hard choices over which it wants more. Premier Li Keqiang opened the annual parliament on March 5 by pledging more exchange rate flexibility, but also stability. The two aren’t necessarily compatible.

Feb 17, 2015
via Breakingviews

China property dispute unearths debt skeletons

Photo

By John Foley

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

When investing in property, check the basement. Kaisa shows what happens when that advice is ignored. Days after rattling lenders with a late interest payment, the Chinese developer has announced its debts are double the level it reported at the end of June. That raises the stakes for the company’s restructuring, and others that may follow.

Feb 17, 2015
via Breakingviews

China property dispute unearths debt skeletons

Photo

By John Foley

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

When investing in property, check the basement. Kaisa shows what happens when that advice is ignored. Days after rattling lenders with a late interest payment, the Chinese developer has announced its debts are double the level it reported at the end of June. That raises the stakes for the company’s restructuring, and others that may follow.

Feb 12, 2015
via Breakingviews

Activists take on passivists in HK share spat

Photo

By John Foley 

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

Activists are taking on Hong Kong’s investor passivism. Hedge fund Elliott Management has mounted a legal challenge to Bank of East Asia, raising questions about the ease with which companies can issue slabs of stock to friendly shareholders. Investors can theoretically stop such deals from happening, but often don’t. That leaves little option but trying to embarrass companies into doing the right thing.

    • 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"
    • Follow John