John Foley is Reuters Breakingviews' China editor. Based in Beijing, he writes on China’s economy and financial markets. John established Breakingviews’ Hong Kong bureau in 2009, and previously wrote on mergers and acquisitions, capital markets and consumer goods in London. Before joining Breakingviews in 2004, John worked as a copywriter for a London-based advertising agency. John read English Literature at Exeter College, Oxford. Follow John on Twitter @johnsfoley
- Tel: +86 10 6627 1220
- E-mail: email@example.com
If Chaori Solar fails to pay interest on March 7, as expected, what then? Investors will be deprived of cash, banks will have to mark down some of their holdings, and new issuers will have to pay more. Though a default is overdue, the aftershocks should not be underestimated.
SOHO’s earnings fell 47 percent in the second half of 2013. A shift from sales to letting means cash flows are dwindling. When the most financially sophisticated players show cracks, it’s time to worry. At least SOHO’s lenders are supportive. Lesser rivals may be less fortunate.
Debates over the fair value of the currency, which has slid 1 percent in a week, miss the point. What really matters is the trajectory that causes least financial and social damage. Halting the build-up of foreign exchange reserves is crucial. Appreciation looks the best course.
- Deadly assault brings new kind of risk to China
- China’s yuan plan looks too clever by half
- China’s yuan slide not nice but necessary
- WhatsApp’s Chinese copycat deserves its premium
- Fear and loathing in China’s trust industry
- Chinese loans are building a bridge to nowhere
- Alibaba tests the limits of non-bank banking