Ao maybe George Soros was on to something after all, the Financial Times reported in an insight. On Monday the People’s Daily, the Chinese Communist party’s flagship newspaper, published a front-page interview with an “authoritative figure” who warned that the country’s soaring debt levels could lead to “systemic financial risks”. The last time the People’s Daily made such a splash was in January, when its overseas edition took Mr Soros to task for allegedly shorting the renminbi.

China is awash in a credit stimulus that is bigger as a proportion of GDP than the one that Beijing unleashed to haul the economy out of trouble in the aftermath of the 2008/2009 financial crisis. But this time around, the deluge is failing to boost growth in an economy already saturated with liquidity, a new statistical study shows, the Financial Times reported.

India's JSW Steel Ltd has bid for the British operations of Tata Steel Ltd, two sources with direct knowledge of the matter confirmed on Tuesday, prompting concerns about its debt levels and putting pressure on its shares, Reuters reported. JSW Steel said in a statement it was evaluating UK steel assets but did not name any specific target. "As part of the company's growth strategy, the company evaluates several opportunities including the current opportunity of UK steel facilities," JSW said.

China Minmetals Corp, the country's biggest metals trader, is raising 15 billion yuan ($2.3 billion) from investors to help restructure and list its financial assets, according to a fundraising document seen by Reuters. Minmetals-controlled Kingray New Materials Science & Technology, a loss-making electrical components maker, is seeking to issue shares to a Minmetals Corp subsidiary, China Minmetals Corp Ltd, to acquire all of Minmetals Capital Holdings, which owns the metals trader's financial assets, the document shows.

The hot topic in Korean corporate circles today is undoubtedly the moves by the government and state-run policy banks to bail out the ailing shipbuilding and shipping companies, The Korea Herald reported. Given the importance of these sectors in Korea and their prolonged financial distress, it is understandable that the government has pushed the panic button. The process of bailing them out has been set in motion with some sort of consensus reached between the Finance Ministry and Bank of Korea. BOK Gov.

Capital flows from China persisted in April despite a reported rise in foreign exchange reserves, which mainly reflected the impact of a weaker dollar on the central bank’s euro and yen holdings, the Financial Times reported. After falling for 18 of 20 months until February, slicing $791bn off the headline total, China’s official reserves rose by a combined $17bn in March and April, hitting $3.22tn last month. But a look inside the data suggests significant latent outflow pressure remains. China has also benefited from global tailwinds in recent months that may not last.

With the Insolvency and Bankruptcy Code inching towards reality, early redress of almost 75,000 cases involving debt of an estimated ₹3.5-lakh crore is what the government and stakeholders expect, The Hindu Business Line reported. While the Debt Recovery Tribunals (DRT) will resolve individual bankruptcy cases, the National Company Law Tribunal will work on corporate insolvency. The reasons for the pile-up of cases varied from legal lacunae to insufficient technical expertise in dealing with such cases. Labour and infrastructure issues also played a big role in hindering resolution.

A fertiliser producer in north China will default on bond payments on Thursday, the latest casualty of a slowing economy and rampant overcapacity in commodity sectors including basic chemicals, the Financial Times reported. Defaults have contributed to falling Chinese bond prices in recent weeks, as well as a widening of the spread between safe government bonds and low-rated corporate notes. Traders said that as the implicit guarantee gradually fades, investors were paying more attention to corporate fundamentals.

India's lower house of parliament on Thursday backed a new bankruptcy code, a crucial step towards establishing a debt resolution regime to strengthen the hands of banks seeking to recover $120 billion in troubled loans, Reuters reported. The Insolvency and Bankruptcy Code 2016, passed by a voice vote, is expected to be approved by the upper house next week as the main opposition Congress party has pledged its support. The government will repeal an ineffectual, century-old insolvency law and amend 11 laws now dealing with defaulters.

Kaisa Group Holdings Ltd., which last year became the first Chinese real estate developer to default on dollar bonds, is seeking to use U.S. bankruptcy law to help its debt reorganization in a Hong Kong court, Bloomberg News reported. The Shenzhen, China-based company filed a Chapter 15 petition in Manhattan court Thursday. Companies use that provision of U.S. bankruptcy law to deal with U.S. creditors or lawsuits when reorganizing in another country.