Research Corner is an Acrostics Asia feature that curates research and analyses for readers to make sense of the evolving trends.

The latest edition includes a couple of notable updates in India.

The Bombay High Court’s decision to freeze the assets of Rolta India’s chairman in support of a New York contempt judgment was a significant development in cross-border enforcement. The ruling was “particularly remarkable” because the chairman was neither a borrower nor a guarantor under the company’s defaulted high-yield bond, according to Kobre & Kim.

AZB & Partners wrote that the Indian lending ecosystem has undergone a significant evolution in recent years, with diversification in the range of participants in the market.

Institutional Investor Advisory Services noted that while Indian group Vedanta has moved ahead with a major demerger plan, a demerger is not the same as deleveraging. “Vedanta can split assets but cannot repay liabilities and cannot by itself make the capital structure stronger.”

Other insights include China’s regional slowdown, data centres in Southeast Asia, Indonesia’s underlying economic fragilities, and Mongolia’s bond issuance outlook.

Indian Court Freezes Rolta Chairman’s Assets in Enforcement of New York Contempt Judgment by Kobre & Kim

A Bombay High Court decision freezing USD 188 million of the Rolta India chairman’s assets in support of a New York contempt judgment underscores how courts may act quickly to preserve assets in cross-border enforcement matters, particularly where there are allegations of deliberate obstruction, according to Kobre & Kim.

Rolta India, the bond issuer, was declared bankrupt in a National Company Law Tribunal proceeding. However, following Chairman Kamal K. Singh’s continued non-compliance, the New York court held the chairman personally liable for contempt and entered a final money judgment of approximately USD 188 million against him, even though he was neither a borrower nor a guarantor under the bond.

Debt Finance 2026 – Trends & Developments in India by AZB & Partners

The Indian lending ecosystem has undergone a significant evolution in recent years, with diversification in the range of participants in the market – both lenders and borrowers.

Over the last couple of decades, these developments include:

• The liberalisation of India’s foreign exchange regulations

• The establishment of better recovery mechanisms for creditors through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act, which allows out-of-court enforcement for secured creditors) and the Insolvency and Bankruptcy Code, 2016 (a creditor-driven insolvency process for corporates)

• The advent of complex debt and quasi-debt structures and instruments

Vedanta: The House That Debt Built by Institutional Investor Advisory Services

The group has consistently relied on a mix of distributions, borrowings, and refinancing to manage obligations at the holding company level, Vedanta Resources Limited, which has been the key pressure point, with debt levels remaining elevated.

The question now is whether it can move towards a model that relies more on operational strength and less on financial engineering. If so, this will mark a shift from Vedanta’s past – built on leverage, acquisitions, and internal cash extraction.

China’s Regional Slowdown: Painful But Necessary? by Chen Jing

Despite external shocks such as the conflict in the Middle East, China’s economy still grew by 5% in the first quarter of this year. However, the regional GDP figures have been far less impressive than the national data, Lianhe Zaobao Associate China News Editor Chen Jing wrote in a piece published by ThinkChina.

In reviewing first-quarter GDP figures for the 31 provinces, municipalities and autonomous regions in mainland China, as many as 16 provinces recorded growth rates below the national average of 5%, compared with only 10 provinces in the same period last year. In many regions, economic growth in the first quarter not only lagged behind the national level, but also slowed markedly compared with last year.

Data Centres in Southeast Asia: Emerging Financing Structures and Litigation Risks by Drew & Napier

Southeast Asia is rapidly emerging as a key corridor for data centre development. Drew & Napier examines the scale of the regional buildout, the financing structures underpinning these projects, and the key litigation risks that may arise.

These risks include:

• Construction delays

• Structured finance disputes

• Private credit exposure

• Investor-state and sovereign interference risks

• Regulatory and geopolitical exposure

• Sustainability-linked financing and greenwashing risks

Indonesia’s 1Q26 Growth Surge Masks Underlying Fragilities by UOB Kay Hian

The strong 1Q pace is unlikely to continue. The state budget has been front loaded, leaving limited space for 2H; rising oil subsidies due to rising oil prices could crowd out other spending.

Private investment is hobbled by policy inconsistency, global risks, and rupiah weakness. Labour market deterioration (layoffs, shrinking formal jobs) threatens consumption. Breaching the 3% deficit ceiling would risk credibility and further pressure on bond yields and the rupiah.

Investor’s Guide to Mongolian Bonds by Capital Markets Mongolia

Total outstanding senior unsecured issuance now stands at approximately USD 5.4 billion across 17 bonds, split between 6 sovereign issues (50%), 3 quasi-sovereign placements (20%), and 8 corporate bonds (30%).

Cumulative repayments of USD 529 million, or 9.8% of total issuance, reflect disciplined liability management led by the sovereign.

Acrostics Asia is an independent credit intelligence provider that built a collaborative model, drawing signal from local experts for readers including investors, bankers and advisors.

Research Corner is an Acrostics Asia feature that curates research and analyses for readers to make sense of the evolving trends.

The latest edition includes insights on:

• The impact of the energy shock on Asia’s economic resilience by IMF

• China’s asset management companies by Fitch Ratings

• The partial recovery in Hong Kong commercial property by S&P Global Ratings

• Insolvency and restructuring law reform in South and Southeast Asia by Clifford Chance

• India’s new FDI and external commercial borrowing rules by Baker McKenzie

• Group action litigation in Australia by Clifford Chance

• Mongolian ministers who matter to investors by Capital Markets Mongolia

Asia’s Economic Resilience Is Being Tested by the Energy Shock by IMF

Asia began this year on solid footing. Now, war in the Middle East and the energy supply shock are raising inflation, weakening external balances, and narrowing policy options. In addition, Asia’s higher energy intensity makes it more vulnerable to fuel-price shocks.

China’s Listed AMCs Expand Business Activity Despite Earnings Pressure by Fitch Ratings

Earnings at China’s listed asset management companies (AMCs) are likely to face continued volatility in 2026, after reporting pressure on 2025 operating earnings. Persistent asset-quality challenges, slower economic growth and weakness in the property sector are likely to weigh on listed AMCs. Even so, Fitch Ratings expects China’s national AMCs to remain central to policy execution over the medium term.

Hong Kong Commercial Property: Partial Recovery To Drive Credit Divergence by S&P Global Ratings

Hong Kong commercial property is in the midst of a highly varied recovery. A resurgent financial industry has stabilized rents for premium offices, while an influx of shoppers from mainland China is boosting discretionary retail. However, Hong Kong’s commercial rents will likely generally fall again in 2026.

Insolvency and restructuring law reform in South and Southeast Asia by Clifford Chance

South and Southeast Asia are undergoing a wave of insolvency and restructuring law reforms, reshaping the region’s financial and corporate landscape.

Vietnam, Thailand and India are introducing or expanding debtor in possession restructuring processes, aimed at intervening earlier to preserve enterprise value and avoid formal liquidation. This builds on the debtor-in-possession model already introduced in Singapore and Malaysia and the global trend which typically prioritises corporate rescue and preserving enterprise value over immediate creditor enforcement in the event of default or payment issues.

Why do India’s new FDI and external commercial borrowing rules matter for cross-border investment? by Baker McKenzie

Both the new External Commercial Borrowing (ECB) and amended Land Bordering Countries (LBC) FDI rules offer Indian businesses expanded access to foreign capital and strategic partnerships. The easing of restrictions on cross-border investments will enable companies to fund restructurings, diversify supply chains, and pursue growth opportunities more efficiently.

Group action litigation in Australia: What lies ahead in 2026 by Clifford Chance

Australia remains one of the most active and sophisticated class action markets globally, and its influence continues to shape group action risk across Asia Pacific. This report examines how Australia’s well‑established class action regime, together with the continued availability of litigation funding and an evolving regulatory environment, is driving sustained levels of group action activity.

Mongolian Ministers Who Matter To Investors by Capital Markets Mongolia

Minister of Industry and Mineral Resources — Damdinnyam G. (holdover): Damdinnyam G. is a mining man in the fullest sense and has spent his tenure pushing one of the most sweeping reform agendas the sector has seen. Since taking office, he has been driving amendments to the Minerals Law as the centrepiece of his reform agenda — one of five key pieces of legislation he has targeted for overhaul.

He remains the government’s point man on the Oyu Tolgoi renegotiation with Rio Tinto, which carries a first-half 2026 deadline. His position on Mongolia’s benefit share: 53%, non-negotiable.

Minister of Finance — Mendsaikhan Z. (new): A first-time minister with a domestic economics background and prior roles spanning public investment, energy sector administration, and presidential advisory work. He pledged continuity with outgoing Finance Minister Javkhlan B.’s policy framework — a signal of fiscal stability rather than reform ambition.

Acrostics Asia built the collaborative model for Asia credit intelligence, drawing signal from a network of local experts for readers including investors, bankers and advisors.

Apart from producing original insights, Acrostics Asia also pulls research and commentaries from the region that can help readers to make sense of the evolving trends.

The latest edition of Research Corner highlights insights across China’s economy, the emerging fault lines in India’s private credit market, the impact of the Iran War on the aviation sector, data centre financing in Asia Pacific, a potential overhaul of Mongolia’s Minerals Law, as well as legal updates in Singapore and Vietnam.

🔸 China’s confidence campaign: Can slogans solve economic woes? by Yang Danxu

Beijing urges the media to “sing loudly” about growth, but empty malls, job struggles and property woes show confidence must rest on real economic fundamentals, not rhetoric, Lianhe Zaobao China News Editor Yang Danxu wrote for ThinkChina.

“In recent years, stories have occasionally circulated among China’s economic analysts circle about people getting into trouble over their comments. Some analysts grumbled in private that they can no longer say a stock has ‘hit limit down’ – they have to say it is ‘waiting to rise’.”

“In the end, public opinion may serve as a lever to bolster confidence, but the fulcrum must rest on the economic fundamentals. By seeking truth from facts, respecting objective economic laws, and fostering a more accommodating environment in which individuals can experiment and unleash creativity, while raising incomes and strengthening the social safety net, confidence will return naturally, without the need for rhetorical fanfare.”

🔸 China Maintains Targeted LRG Fiscal Support, Limited Room for More Stimulus by Fitch Ratings

China’s 2026 fiscal budget signals a continuation of targeted fiscal support at the local and regional government (LRG) level, though with limited scope for additional stimulus as authorities show growing tolerance for slower growth, Fitch Ratings said.

“We expect higher debt growth and weak revenue expansion in 2026 to narrow the rating headroom for LRGs. However, debt growth should ease after 2026 as the debt substitution programme – a multi-year fiscal initiative that refinances local-government financing vehicles’ (LGFV) hidden debt with LRG bonds – largely concludes.”

🔸 Fault Lines Show Up in India’s $25 Billion Private Credit Market by Shilpy Sinha

Fault lines are beginning to show in India’s fast-growing private credit market that has expanded to about USD 25 billion in size, Shilpy Sinha reported for The Economic Times.

Industry executives say a few private credit deals are already showing early signs of stress. Light-touch regulations have meant that unlike banks or non-bank lenders that must periodically disclose their suspect-loans data, lenders in these markets do not need to disclose asset-level performance.

🔸 Iran war threatens to rewrite rules of aviation by Shukor Yusof

The war in Iran has called into question the long-term economic sustainability of the Gulf countries and vulnerabilities of Middle Eastern carriers, Endau Analytics’ Shukor Yusof wrote for CNA.

“There may be some winners in the near term. Cathay Pacific, for one, stands to gain most from the Gulf fallout. Today, Cathay is a stronger airline than in 2019 when it suffered from protests that hurt Hong Kong’s economy and later, the pandemic. The airline has recovered and is pursuing a sound geopolitical strategy that closely aligns itself with China.”

“Operationally, Cathay’s jets can skirt current warzones, along the relatively safe corridors of Central Asia or simply fly through the vast Russian airspace. As a Chinese airline, it is not subjected to sanctions, unlike Western carriers that have been banned from or are avoiding the Russian airspace since 2022.”

🔸 Network effects: How data centre financing is reshaping loan markets in Asia Pacific by APLMA

The Asia Pacific Loan Market Association (APLMA) has produced its first thematic whitepaper, examining the current state of the data centre financing market, unique challenges and features of the financing market in Asia Pacific, along with the key trends and opportunities for loan market participants. The paper was sponsored by Fitch Ratings and Latham & Watkins LLP.

🔸 Mongolia’s 2026 Spring Session: Key Developments Investors Must Watch by Capital Markets Mongolia

Mongolia’s Parliament has officially kicked off a landmark session, putting 32 major legislative items – including an overhaul of the Minerals Law – on the table, Capital Markets Mongolia (CMM) wrote.

According to the Minister of Industry and Mineral Resources, about 50% of the Minerals Law will be amended, marking potentially the most substantial reform in over a decade.

🔸 Singapore Court of Appeal Clarifies Test for Removal of Judicial Managers by Sheila Ng

In Singapore, judicial managers (JMs) appointed over a company are empowered to conduct a range of acts relating to the company’s business. However, JMs face removal if they fail to adhere to the legislative framework on judicial management.

In Tay Lak Khoon v Tan Wei Cheong [2025] SGCA 41, the Singapore Court of Appeal set out the applicable test for when a JM may be removed for cause, according to Sheila Ng, Head of Restructuring & Insolvency at Rajah & Tann Singapore LLP. In particular, the Court of Appeal considered whether a JM may be removed for a decision based on legal advice.

🔸 Vietnam’s New Legal Framework Prioritising Corporate Rehabilitation by Indochine Counsel

Vietnam is shifting its approach to corporate distress, from liquidation to rehabilitation, according to Indochine Counsel. The newly adopted Law on Rehabilitation and Bankruptcy 2025, effective 1 March 2026, introduces a legal framework that places corporate recovery at the centre of insolvency proceedings, marking a significant evolution from the previous bankruptcy regime.

Acrostics Asia has added Research Corner, which pulls research and commentaries from the region that can help readers to make sense of the evolving trends.

The February 2026 edition highlights insights across Asian currencies, Indonesia, Vietnam, Mongolia and India as well as the Basel Committee’s analysis of synthetic risk transfers.

🔸 Asia FX Talk - What if oil prices spike further? Implications of Iran conflict by Michael Wan

For Asia FX, a prolonged and escalating conflict with sustained oil price spikes will weigh on Asian currencies given that most in our region are net oil importers.

🔸 The ART of the bad deal by Riandy Laksono

In a piece published on The Jakarta Post, Riandy Laksono calculated the effective tariff rates for the Indonesia-US trade deal (ART) and compared it with doing nothing (facing section 122 tariff with exemption). The conclusion is that doing nothing is still better.

🔸 Indonesia Sovereign Rating by Aryo Perbongso’s team

Aryo Perbongso shared the key takeaways from his team’s meetings to discuss Indonesia’s sovereign rating:

“The binding issue is fiscal affordability, because Indonesia’s revenue/GDP is structurally low versus BBB peers and its interest-to-revenue burden is unusually high, making the sovereign more vulnerable to rate shocks and risk-premium spikes.”

“Danantara debt consolidation is not the base case, but governance weaknesses could still create material contingent liabilities, so transparency on funding plans, safeguards, and guarantees is a critical watchpoint.”

🔸 Sluggish Indonesia market clouds aviation outlook for Southeast Asia by Brendan Sobie

A large contraction in domestic air travel within Indonesia will impact the regional outlook in Southeast Asia, aviation analyst Brendan Sobie wrote for CNA.

🔸 Vietnam after the 14th Party Congress: A new tenure with higher stakes by Linh Nguyen

Vietnam remains open for business after the 14th Party Congress. But the system now moves faster, with less tolerance for mistakes. The opportunity remains. The risk is whether execution and institutional capacity can keep pace.

🔸 Fresh range of offshore loan rules – Vietnam by VTN and Partners

The State Bank of Vietnam issued a new circular that amends one of the main regulations governing how Vietnamese enterprises borrow from offshore lenders and manage those debts. This article walks through what actually changed, compares the old and new rules, and looks at what it means for structuring offshore financing into Vietnam.

🔸 Inside Tsetsens Mining and Energy’s US$300 Million Landmark Bond by Capital Markets Mongolia

This transaction extends beyond a single issuer’s capital raise. It demonstrates that non-traditional and first-time issuers can successfully access international markets, thereby diversifying funding sources and expanding the structural framework of Mongolia’s private infrastructure financing model.

🔸 New route for offshore lenders through the liberalization of India’s ECB framework by A&O Shearman

On 16 February 2026, the Reserve Bank of India notified amendments to the existing External Commercial Borrowings regulations which are effective immediately and applicable to new borrowings going forward. The Amended Regulations provide significant opportunities for the leveraged finance market and offshore to onshore structures.

🔸 Basel Committee publishes analysis of synthetic risk transfers

The Basel Committee on Banking Supervision published a report on synthetic risk transfer (SRT) transactions. The economic importance of SRT markets has grown rapidly over the last decade and they have become an important source of capital relief for corporate credit risk.