Vehicle crash

Investors in Chinese bonds should prepare for a nasty surprise in 2018. Beijing’s tolerance for off-balance sheet municipal borrowing has faded as debt levels have exploded. In the name of repricing risk, regulators will allow the once-unthinkable: a big default by a local government financing vehicle. LGFVs became popular in China during the global financial crisis. The … http://reut.rs/2DmSJpA

Looking peaky

Chinese investors are buying into a London skyline that is past its peak. Two landmark skyscrapers in the city’s financial district have recently been sold to Hong Kong-based bidders. The sky-high prices put pressure on yields at a time when Britain’s departure from the European Union is threatening rents. Still, it is a safer bet than investing at home. London’s 20 Fenchurch … http://reut.rs/2vgb2Id