Asia Pacific

It is official: the Chinese central bank does not want to trigger its own credit crisis, the Financial Times reported. After two weeks of starving the financial system of cash and telling banks to clean up their own mess, the People’s Bank of China struck a much more emollient tone on Tuesday. In a volte-face that bore more than a passing resemblance to Mario Draghi’s “unlimited” bond-buying pledge last year at the European Central Bank, the Chinese central bank promised to provide liquidity support to any financial institution strapped for cash.

Cyprus said on Tuesday it was not trying to wriggle out of terms of an EU/IMF bailout imposed on the island, but said some provisions of the deal needed tweaking to address problems in its battered banking sector, Reuters reported. "Every effort will be applied so our positions are met with understanding by our partners... We are not seeking re-negotiation but an adjustment of certain measures," Cypriot President Nicos Anastasiades told reporters.

Canada's biggest securities regulator accused Ernst & Young LLP of failing to properly audit the financial statements of Zungui Haixi Corp. ahead of the Chinese shoe maker completing a 39.8 million Canadian dollar ($38.1 million) initial public offering in 2009 and listing its shares on the junior Canadian TSX Venture Exchange. The allegations come after the Ontario Securities Commission in December alleged the big accounting firm failed to adequately audit the financial statements of Sino-Forest Corp. between 2007 and 2010.

Global shipping company TMT Group sought bankruptcy protection after failing to restructure its $1.46 billion debt load out of court, The Wall Street Journal reported. The company, which has a fleet of 17 vessels that transport everything from oil to vehicles around the world, filed for Chapter 11 protection on Thursday in Houston, the latest victim of an industry downturn that has left shipping businesses struggling with their balance sheets. In the years leading up to the recession, TMT, like many of its peers, was building up its fleet, placing orders for new ships.

China’s financial system is in the throes of a cash squeeze as the government tries to restructure the economy and punish speculators, with interbank lending rates spiking on Thursday and bank-to-bank borrowing nearly stalled, the International Herald Tribune reported. China’s interbank and money market rates have soared over the last two weeks, and banks and other financial institutions are afraid of lending to one another. Without that lending, an economy can quickly stultify. Those in need of short-term cash, or liquidity, must pay dearly or risk default.

Cyprus’ president has asked eurozone leaders for a complete revamp of his country’s €10bn bailout, warning Nicosia may not be able to meet the rescue’s current terms because it has harmed the country’s economy and banking system even more than expected.

G8 leaders tried to plug the holes in their public finances with a sweeping commitment to shake-up international corporate tax rules, including a new crackdown on tax evasion and the shadowy owners of shell companies, the Financial Times reported. The leaders of eight of the world’s biggest economies signed a 10-point Lough Erne Declaration that calls for tax authorities around the world to automatically share information.

Receivership of MediaWorks may be the move that saves the company, a former TVNZ presenter and New Zealand on Air board member Judy Callingham says, Stuff.co.nz reported. Callingham said this morning's appointment of Kordamentha, which is expected to be followed by a sale to the broadcasting company's bankers, would be frightening for staff but was necessary to manage excess debt. Brendan Gibson and Michael Stiassny of KordaMentha have been appointed by MediaWorks' senior lenders to manage a transition in ownership from private equity firm Ironbridge.

A record seven million students will graduate from universities and colleges across China in the coming weeks, but their job prospects appear bleak — the latest sign of a troubled Chinese economy, the International Herald Tribune reported. Businesses say they are swamped with job applications but have few positions to offer as economic growth has begun to falter. Twitter-like microblogging sites in China are full of laments from graduates with dim prospects.

New Zealand broadcaster MediaWorks Ltd was placed in receivership on Monday after its private equity owners and bankers failed to agree on a refinancing deal, but new owners have been lined up, Reuters reported. Investors led by Australian businessman Rod McGeoch, a director of gaming company SkyCity Entertainment Group Ltd and chairman of Vantage Private Equity Ltd, are set to take over the company which operates New Zealand's TV3 and Channel 4 television networks, and a string of radio stations.