Asia Roundup
India Bond Tax Moves to Catalyse Foreign Debt Inflows
India’s decision to exempt foreigners from taxes on government bonds and broaden access to the debt market is expected to make the country more attractive to overseas investors, catalyse fresh inflows and strengthen its case for inclusion in global indexes, Reuters reported.
Policymakers unveiled a wide-ranging set of measures to draw in overseas capital while shoring up the currency and external balances, which have been strained by higher oil prices.
The slew of measures is beginning to lure foreign investors back into an overlooked market against a backdrop of rising global rate volatility.
Chinese Homeowner Buys 34th Floor Flat in 32-Storey Building, Gets No Compensation
A Chinese man bought a flat on the 34th floor of a newly developed building only to be told four years later that the building only had 32 floors, South China Morning Post reported.
The unit he bought was about one third of the average housing price, because the residential compound came with limited property rights. A flat with limited property rights is an unofficial name for a kind of grey market housing developed illegally on collectively owned rural land.
SoftBank Attempt to Get $6 Billion OpenAI Margin Loan Stalls
SoftBank Group’s talks with potential creditors to raise at least $6 billion from a margin loan backed by its OpenAI stake have stalled, just weeks after the Japanese conglomerate cut its initial target from $10 billion, Bloomberg reported, citing people familiar with the matter.
The company is considering various fundraising options, according to the people. It could still move forward with the margin loan at a later stage.
Indonesia Roundup
Bank Indonesia Chief Touts Higher Bond Yields to Investors
Indonesia’s central bank governor signaled it would allow bond yields to rise and left the door open for future interest-rate hikes during a roughly 90-minute call late Tuesday night with investors, Bloomberg reported.
Bank Indonesia’s primary focus is the stability of the currency and policymakers are taking preemptive action to ensure the rupiah finds steadier footing, Governor Perry Warjiyo said in a call with more than 200 participants dialing in from the US and Europe.
Indonesia’s Trade Ministry Faces Barrage of Questions from Businesses Over New Export Control Plan
Indonesian trade ministry officials faced a barrage of questions from exporters of palm oil, coal and ferroalloys worried about the impact of a controversial new export control plan designed to extract more profit from the country's natural resources, Reuters reported via CNA.
Exporters are now obliged, in the first phase, to report all their export activities to state firm Danantara Sumberdaya Indonesia (DSI).
The ministry officials deferred most questions to DSI, which did not attend the event, and simply said the contracts will be carried out on a business-to-business basis.
Several participants also asked how they could reach out to DSI, which at the time of Prabowo’s announcement had only one employee: its CEO.
Maybank Says Indonesian Unit Not Under Investigation, Cooperating with Authorities
Malayan Banking (Maybank) said its Indonesian unit is cooperating with authorities after some of its personnel were asked to provide information as witnesses in connection with an ongoing matter involving certain corporate customers, The Star reported.
“Maybank Indonesia’s personnel have been requested to provide information as witnesses to assist the authorities, and the Bank is not the subject of any investigation,” the banking group said in a statement.
The clarification follows a Bloomberg report that Indonesian authorities had questioned Maybank Indonesia personnel as part of an investigation into suspected export flows involving Salim Ivomas Pratama, one of Indonesia's largest palm oil producers.
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