Asia Pacific

India's top court on Wednesday revived insolvency proceedings against education technology company Byju's following a lawsuit by a trust representing U.S. lenders who say they are owed $1 billion by the company, Reuters reported. The Supreme Court order is a setback for founder Byju Raveendran whose eponymous online coaching company was valued at $22 billion in 2022 before suffering setbacks including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement. The company has denied any wrongdoing.

Japan’s economy rebounded to growth in the second quarter on the back of an increase in private consumption, in a sign that a virtuous cycle long sought by the central bank linking rising incomes to increased spending may be starting to emerge, Bloomberg reported. Gross domestic product expanded at an annualized pace of 3.1% in the three months through June versus the prior period, the Cabinet Office reported Thursday. The reading, which exceeded the 2.3% consensus estimate, came after the economy contracted by a revised 2.3% in the first quarter.

The world’s biggest steel producer sounded the alarm about an industry crisis in China that carries the potential to ripple around the globe and plunge the sector into a deeper downturn, Bloomberg reported. Conditions in China’s steel sector are like a “harsh winter” that will be “longer, colder and more difficult to endure than we expected,” China Baowu Steel Group Corp. chairman Hu Wangming told staff at the company’s half-year meeting, warning of a worse challenge than major traumas in 2008 and 2015.

South Korea's mom-and-pop investors are defying last week's global financial markets rout by pouring even more funds into U.S. stocks, a years-long trend that analysts and investors bet will continue due to the depressed value proposition at home, Reuters reported. South Korean retailers have been scooping up Nvidia, Tesla Inc. and Apple shares this year fueled in part by the worldwide AI-frenzy, a move that comes despite government efforts to boost the domestic stock market.

A group of senior Biden administration officials is traveling to Shanghai this week for a round of high-level meetings intended to keep the economic relationship between the U.S. and China on stable footing amid mounting trade tensions between the two countries, the New York Times reported. The talks will take place on Thursday and Friday and are being convened through the U.S.-China Financial Working Group, which was created last year.

Japanese technology investor SoftBank Group Corp. reported a smaller loss for the last quarter compared to a year earlier, the Associated Press reported. Tokyo-based SoftBank’s losses totaled 174 billion yen ($1.2 billion) in the April-June quarter, the company said Wednesday. It racked up nearly 478 billion yen in red ink in the same period of last year. Quarterly sales rose 9% at SoftBank, which has investments in various technology companies including American office-space-sharing WeWork; Alibaba, a Chinese e-commerce company, and telecommunications company T-Mobile.

Commonwealth Bank of Australia, the country's biggest lender, is expected to unveil a small decline in annual earnings on Wednesday, with investors focused on whether rising deposit payouts and bad loans will outweigh gains in mortgage revenue, Reuters reported. The earnings will be closely watched to see if the lender's share price surge of one-third since late 2023 is justified, especially considering the broader banking sector in July posted its strongest rally in nearly two years.

Glas Trust Company has filed the plea challenging the NCLAT order which quashed the bankruptcy proceedings against BYJU in the Supreme Court, LegalWorld.com reported. The matter will be heard on August 12. The NCLAT quashed the bankruptcy proceedings against BYJU after a settlement was reached between Board of Control for Cricket in India (BCCI) and BYJU, wherein the ed-tech agreed to pay off its dues of INR 158 Cr. Glass Trust opposed the settlement on the grounds on possibly jeopardizing of their financial interest while settling the BCCI debt.

An investor has filed a petition in a Chinese court to liquidate a major onshore unit of heavily indebted property developer China Evergrande, a stock filing by the petitioner showed on Wednesday, Reuters reported. Vanward, a Shenzhen-listed electric appliance manufacturer, cited a dispute with Evergrande unit Guangzhou Kailong Real Estate over an investment worth 200 million yuan ($27.9 million). A court in the southern Chinese city of Guangzhou is reviewing Vanward's case, the filing said.

Some overseas lenders to India's Byju's have appealed to the country's apex court opposing a verdict that had quashed insolvency proceedings against the embattled education startup, Reuters reported. U.S.-based Glas Trust, representing some lenders of a Byju's group company, on Aug. 7 filed an appeal before India's Supreme Court, challenging an appeals tribunal's verdict that allowed Byju's and the cricket control board of the country to settle a $19 million payment case. Glas, earlier this month, opposed the settlement at the Indian appeals tribunal, but was rejected.