Christopher Beddor
ReutersBreakingviews
Hong Kong
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Past articles by Christopher:
Hong Kong’s politics could knock down developers – Breakingviews
In a sign that protests have hit real estate, officials rejected offers for a plot at the former airport as too low. Things could get worse with perception growing in Beijing that property titans are partly to blame for the unrest. It heralds policy changes that crimp earnings. → Read More
Hong Kong’s LSE bid conceals a shrewd Beijing view – Breakingviews
David Schwimmer, CEO of London’s bourse, says China is opening up. HKEX boss Charles Li has partly based a $34 bln pitch for his rival on the opposite. Experience suggests Li's diagnosis on capital controls is right. Whether his prescription is correct is another matter. → Read More
Beijing’s monetary easing path is a conflicted one – Breakingviews
China has trimmed its new one-year benchmark lending rate to 4.2%. Policymakers want to boost slowing growth, but without fueling a property or credit bubble. The result is another half-step towards loosening that will disappoint those hoping for a quick stimulus. → Read More
Beijing enables corporate debt dysfunction – Breakingviews
A provincial government funding vehicle has declined to redeem its perpetual bonds for the first time. State-backed companies embraced equity-like hybrid debt in part to hit their deleveraging targets. With $75 bln of it effectively coming due, the shortcut could prove costly. → Read More
Tencent jams pedal into battered China car market – Breakingviews
The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery. → Read More
Beijing’s new moves dance around capital controls – Breakingviews
Quotas on a pair of high-profile inbound investment schemes are being scrapped. It’s partly symbolic, given that a $300 bln cap was never hit. China wants more foreign funds, but not enough to put outbound flows at risk. Mounting debt problems will further entrench the system. → Read More
China’s 5G fix reflects a costly global reality – Breakingviews
Two of the three state telecom outfits will join forces to build a next-generation network. Cooperation could shave about $50 bln off a bill likely to be several times larger. It's a solution that suits Beijing’s ambitions, but a sensible one; overseas rivals may not be so lucky. → Read More
Carrie Lam climbdown hints at Beijing’s priorities – Breakingviews
Hong Kong’s chief executive withdrew a controversial extradition bill, probably with central government approval. Her other comments implied that mainland officials are focused on risks to China’s positive international image. Trade negotiators should take note. → Read More
Chinese consumers are deceptively perky – Breakingviews
Sales of athletic gear, appliances and such have kept growing at 7-10% in defiance of economic headwinds blowing more strongly. Tax cuts and rising property values are helping. Without such support, the likes of Tiffany, Haier and Yum China are likely to feel the slowdown’s pinch. → Read More
China’s real estate cold turkey risks withdrawal – Breakingviews
The economy is cooling and the trade war is worsening, yet Beijing refuses to juice housing markets. Stimulus without touching a sector that feeds about 15% of GDP is hard. That officials are trying suggests they are willing to bear a lot of pain to hold home prices down. → Read More
China’s oil and gas titans heed the call to spend – Breakingviews
President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants were listening: $81 bln Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution abroad. U.S. sanctions only add urgency to national service. → Read More
Beijing-backed businesses riding to the rescue – Breakingviews
They account for about a quarter of China’s GDP, a new World Bank study reckons. Lending data suggest a larger impact and Fitch counts more than 100 recent cases of listed companies selling stakes to state-owned enterprises. Helping cushion a weaker economy will be a big burden. → Read More
China’s rate reform inches along the market path – Breakingviews
The central bank is shaking up loan pricing, pushing aside a long-standing benchmark set by officials. It’s an overdue step designed to ease credit conditions and help companies borrow. Transmission problems remain, but a move closer to a more responsive system is welcome. → Read More
Moutai investors channel their inner Carl Icahn – Breakingviews
Scrappy shareholders challenged the $180 bln Chinese distiller, echoing the U.S. activist’s tilts at titans such as Apple. State-backed Kweichow Moutai will sidestep a vote and cap related-party deals. There’s more work to be done, however, on Beijing-linked corporate governance. → Read More
China’s trade balance previews a life in hock – Breakingviews
Its once-massive current account surplus may soon go into reverse. True, the deficit might be minimal at first, but China could one day need to attract an annual $200 bln of foreign capital. More openness in capital markets and financial services would be a good place to start. → Read More
China’s best-case trade deal looks worse and worse – Breakingviews
Negotiators have wrapped up another round of talks in Shanghai without result. A ceasefire was brokered in June but Trump no longer seems enthused about a quick compromise that might expose him to criticism. Unfortunately, a lacklustre economy means time is not on Beijing's side. → Read More
China’s next debt jitters will be among households – Breakingviews
Worries over bad loans are concentrated in the corporate sector but families are taking on borrowings at about twice the rate of overall economic growth. The relentless increase is unsustainable. As other engines sputter, consumers may not be a reliable fallback for Beijing. → Read More
China can toss Huawei a lifeline with a 5G splurge – Breakingviews
The telecom giant blacklisted by Washington in May says first-half revenue rose 23%, despite tensions abroad. Longer term, it is Beijing’s push on next-gen mobile networks that will shape Huawei’s fate. Forcing carriers to step up infrastructure spending can soften the U.S. blow. → Read More
China slowly clarifies its bank bailout message – Breakingviews
Two months after officials seized one regional lender, state-backed financiers are taking stakes in Bank of Jinzhou, which holds a roughly $100 bln balance sheet. Mixed signals plagued the last round. The trick now will be sticking to a message that keeps investors a bit nervous. → Read More
Fresh attack on China’s zombies can bury some – Breakingviews
Beijing officials are on a campaign to kill off moribund companies. Past versions of this familiar horror flick have ended with local authorities keeping state-owned groups staggering along anyway. But a healthier economy and big ambitions make this sequel worth watching. → Read More