Asia Pacific

A regulatory breakthrough is expected to slash costs for investors trading over-the-counter derivatives in China, the latest step in opening up the nation’s capital markets to foreign investors, Bloomberg News reported. A Chinese law that takes effect Monday enforces a mechanism used around the world for determining payouts if a derivative counterparty defaults, bringing the standards there in line with those used in other major markets.

China Evergrande Group will offer its offshore creditors asset packages that may include shares in two overseas-listed units as a sweetener, the developer said on Friday, as a stifling liquidity crisis in the property sector continues, Reuters reported. The two listed units are Evergrande Property Services Group Ltd and electric vehicle maker China Evergrande New Energy Vehicle Group Ltd, the embattled developer said in an update on its preliminary restructuring proposal, a move that was widely expected by creditors.

A group of offshore creditors to China Evergrande Group are demanding additional information about the seizure of nearly $2 billion by local banks that could explain how the troubled property developer pledged the funds without investors’ knowledge, the Wall Street Journal reported. Last Friday, Evergrande released the preliminary results of an investigation into the missing funds pledged as security for loans by an offshore subsidiary that manages Evergrande-built properties.

China will try hard to achieve the best possible results for the economy this year, state media said on Thursday after a high-level meeting of the ruling Communist Party, dropping previous calls that it will strive to meet its 2022 growth target, Reuters reported. In the second half, China should "stabilise employment and prices, maintain economic operations within a reasonable range, and strive to achieve the best possible results," Xinhua news agency reported, after the 25-member Politburo chaired by President Xi Jinping met to assess the economy.

Thai cryptocurrency exchange Zipmex said in a document dated July 27 that its solicitors in Singapore, Morgan Lewis Stamford LLC, filed five moratorium applications, or legal authorization to debtors to postpone payment, under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of the company, Cointelegraph.com reported. Zipmex seeks to protect itself against third party actions, claims, and proceedings for a period of six months while the filing is active.

The bankruptcy court on Thursday allowed a petition to withdraw the insolvency resolution process against Sahara Hospitality, after the company and its operational creditor agreed to settle their dispute, the Economic Times of India reported. Mumbai-based Sahara Hospitality, the owner of Hotel Sahara Star and part of Subrata Roy’s Sahara India Pariwar, was admitted under the corporate insolvency resolution process (CIRP) after operational creditor Delta Electro Mechanical filed a petition claiming a default of over Rs 50 crore by the company.

China Evergrande Group has only days to unveil its restructuring plan, but even if it meets the deadline, the embattled property developer faces a new and considerable hurdle: A young, politically connected investor who wants to wind down the company unless he gets his money back fast, Bloomberg reported. A business tied to Lin Ho Man, who only a few years ago graduated from the University of California Irvine, filed a petition in Hong Kong to wind down Evergrande if it doesn’t repay HK$862.5 million ($110 million).

Australia's economy will grow less than expected in coming years because of a global slowdown, high inflation and rising interest rates, Treasurer Jim Chalmers will say on Thursday, according to excerpts of a speech seen by Reuters. Chalmers will tell parliament that economic growth in the 2021/22 fiscal year that ended on June 30 is expected at 3.75%, down from a forecast of 4.25% made by the previous government in March. Growth forecasts for 2022/23 and 2023/24 have also been revised down by half a percentage point to 3% and 2%, respectively.

The U.S. public company accounting regulator will not accept any restrictions on its access to the audit papers of Chinese companies listed in New York, including where firms have been delisted, two people with knowledge of the U.S. agency's thinking told Reuters. Washington and Beijing are in talks to settle a long-running dispute over the auditing compliance of U.S.-listed Chinese firms which, if unresolved, could see more than 270 Chinese firms kicked off New York bourses.

The Bank of Japan won't make any quick or drastic changes to its monetary policy framework and is likely to keep interest rates low, even as this week's board reshuffle brought in less dovish members, former BOJ policy board member Sayuri Shirai said on Tuesday, Reuters reported. "Japan's neutral rate is very low... Together with inflation expectation, Japan's nominal interest rate will be low," Shirai told the Reuters Global Markets Forum (GMF).