Asia

The vice mayor of Tianjin told financial institutions on Tuesday he expected no additional state companies to default in the northern Chinese city and promised to maintain a healthy credit environment, three sources told Reuters. Since late 2020, several defaults by state firms including Yongcheng Coal & Electricity Holding Group Co., Tsinghua Unigroup Ltd and automaker Huachen Automotive Group have eroded investor confidence, pushing up corporate funding costs.
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The owners of Suning.com plan to sell more shares held in the debt-ridden Chinese retail group, it was announced Wednesday, a sale that puts founder and Chairman Zhang Jindong's control over the company into question, Nikkei Asia reported. Zhang and entities under his control will sell a portion of their shares in Suning. The buyers and the percentage stake involved have not been disclosed. This move comes after Zhang and other shareholders decided in March to sell a 23% stake in Suning to a group of state-owned investors for 14.8 billion yuan ($2.28 billion at current rates).
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Thailand’s central bank held its benchmark rate unchanged on Wednesday, signaling a need to preserve policy space as the country grapples with its biggest wave of Covid cases and a weakening outlook for the tourism-reliant economy, Bloomberg News reported. The Bank of Thailand’s rate setting committee unanimously decided to hold rates at a record low of 0.5% for a ninth straight meeting, as expected by all 25 economists in a Bloomberg survey. The committee “stands ready to use limited policy space at the most-effective timing,” Bank of Thailand Assistant Governor Titanun Mallikamas said.

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An Indian bankruptcy court ruled Jet Airways India Ltd. can resume operations under a new owner more than two years after it collapsed, according to Ashish Chhawchharia, the court-appointed professional running the carrier’s insolvency, Bloomberg News reported. Jet Airways, once India’s biggest private carrier, fell into bankruptcy in 2019 under mounting debts. Dubai-based businessman Murari Lal Jalan and Kalrock Capital Management Ltd.
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Three Vietnamese banks have pledged to lend 4 trillion dong ($173.8 million) to Vietnam Airlines to help the troubled flag carrier weather the impact of the pandemic and avoid bankruptcy, state media reported on Monday, according to Reuters. Vietnam Maritime Commercial Joint Stock Bank, Saigon - Hanoi Commercial Joint Stock Bank and SeABank would make the interest-free loans this month and early next month, the Lao Dong newspaper cited the central bank as saying.
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Future cooperation between Canadian miner Centerra Gold Inc. and Kyrgyzstan’s government in operating a gold mine in the Central Asian nation is unlikely, according to the nation’s finance minister, Bloomberg News reported. The government took over Kumtor mine late last month, using environmental concerns and tax issues to justify the move. It is now the subject of international arbitration initiated by Toronto-based Centerra, while the mine’s operating company Kumtor Gold filed for chapter 11 protection in New York on May 31.
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Borgward will file for bankruptcy, which will be announced at the beginning of July, Sina Tech reported today, according to Gasgoo.com. In 2014, BAIC Foton acquired the iconic German brand and in March, 2019, Ucar, a chauffeured car service provider in China, bought 67% stake of the company with 4.109 billion yuan. Many former employees of Borgward revealed that in order to help Borgward enter into high-end vehicle market, Foton has been marketing Borgward as a brand with German origin, but its heavy investment seems to be a failure.

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China's central bank said on Monday it had recently summoned some banks and payment firms, including China Construction Bank and Alipay, urging them to crack down harder on cryptocurrency trading, Reuters reported. The People's Bank of China's meeting came after China's State Council, or cabinet, last month said that it would tighten restrictions on bitcoin trading and mining. Beijing has sharply ratcheted up its campaign in the last few weeks.
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Philippine Airlines Inc.’s parent company posted a record loss last year, reflecting the “extraordinary” impact of the coronavirus pandemic on the carrier, Bloomberg News reported. PAL Holdings Inc. reported a 71.8 billion pesos ($1.48 billion) loss in calender 2020, compared to a 10.3 billion peso shortfall the year before, the company said in a stock exchange filing Thursday. In the first quarter of this year, its loss narrowed to 8.6 billion pesos from 9.4 billion pesos a year earlier.
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