Asia

SREI Group promoters on Wednesday moved the Bombay High Court challenging Reserve Bank of India’s decision to supersede the board of two group companies, in preparation for sending them to bankruptcy courts, the Economic Times of India reported. Srei group promoters are seeking stay on any insolvency proceedings at group companies Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd, whose board the regulator sacked and appointed an administrator. The promoters are also seeking stay on the appointment of the administrator.
Read more
Japanese Finance Minister Shunichi Suzuki said the nation’s incoming government will seek a new type of capitalism that helps tackle wealth inequality, but on questions around the sales tax, debt and the central bank he sounded like the official he replaced a day earlier, Bloomberg News reported. “I’ll be seeking to bring about a new form of capitalism that creates a virtuous cycle of growth and wider wealth distribution,” Suzuki said at his inaugural press conference Tuesday, a day after succeeding long-serving finance chief Taro Aso.
Read more
Growing worries about defaults at Chinese property developers triggered a rout in their shares and bonds on Tuesday with fresh credit rating downgrades and uncertainty about the fate of cash-strapped China Evergrande Group sapping investor sentiment, Reuters reported. Once China's top-selling developer, Evergrande is facing one of the country's largest-ever debt restructurings as it wrestles with more than $300 billion in liabilities, including nearly $20 billion in offshore debt.
Read more
As China Evergrande Group edges closer to a massive restructuring, Beijing has stepped up efforts to limit the fallout, signaling it’s willing to prop up healthy developers, homeowners and the real estate market at the expense of global bondholders, Bloomberg News reported. In the last week alone, Chinese authorities have dispatched top financial regulators to nudge the country’s massive banks to ease credit for homebuyers and support the property sector. They also bought out part of Evergrande’s stake in a struggling bank to limit contagion.
Read more
Chinese property developer Fantasia Holdings Group Co Ltd missed a debt payment deadline on Monday in the latest sign that distress is spreading from embattled China Evergrande and through the real estate sector, Reuters reported. Fantasia said that $206 million was due on Oct. 4 and that it did not pay, in a statement to the Hong Kong stock exchange. The company had said as recently as Sept. 20 that it had "sufficient working capital and no liquidity issue." With a market value of $415 million, Fantasia is a minnow.
Read more
Philippine Airlines Inc. received U.S. court approval to access a $505m debtor-in-possession financing, which is core to its restructuring plan, Bloomberg News reported. “This important step confirms that our recovery process is on track,” Philippine Air President Gilbert Santa Maria said in a statement. Getting full access to the long-term equity and debt financing will give the Lucio Tan-led airline additional liquidity to meet obligations and continue operating as usual.
Read more
Tata Sons Pvt. is set to take over ailing Air India Ltd. again, more than half a century after the country’s biggest conglomerate ceded control to the state, ending the government’s hold over an airline that for decades defined the lofty ambitions of a newly-independent nation, Bloomberg News reported. A panel of ministers accepted a proposal from bureaucrats, who recommended the conglomerate’s bid ahead of an offer from entrepreneur Ajay Singh. An official announcement is expected in the coming days.
Read more
Trading of China Evergrande Group shares was suspended in Hong Kong, along with those of its property management unit, as the property giant contends with a deepening cash crisis, Bloomberg News reported. No reason was given for the trading halts, which also affect all structured products relating to the company, a stock exchange filing showed on Monday morning. Evergrande shares have plunged 80% this year, and its bonds have tumbled to levels that suggest investors are bracing for a default.
Read more
Japan's business mood improved for a fifth straight quarter in September with manufacturers perking up on robust global demand, a central bank survey showed on Friday, boding well for the next administration's bid to pull the economy out of the doldrums, Reuters reported. Steady progress in vaccinations and hopes of a re-opening in economic activity also helped lift non-manufacturers' mood, the survey showed, underscoring the Bank of Japan's view an end to state of emergency curbs will prop up consumption.
Read more

Thailand plans to significantly increase the share of long-dated sovereign bonds to meet its financing needs as Southeast Asia’s second-largest economy continues to reel from the coronavirus pandemic, Bloomberg News reported. Bonds will make up 48%-56% of the government’s borrowing of 2.3 trillion baht ($68.4 billion) in the fiscal year that began Friday, compared with 31% a year earlier, when it relied more on short-term securities such as promissory notes and treasury bills, said Patricia Mongkhonvanit, director general of the Public Debt Management Office.

Read more