Asia Roundup
China Evergrande’s Liquidation Prompts Some PwC Partners to Shield Assets, Contemplate Divorce
The liquidation of China Evergrande Group, the collapsed property developer, is raising concerns among some partners at its former auditor PricewaterhouseCoopers China about the potential impact on their own finances, Bloomberg reported.
Several partners at PwC’s Hong Kong and mainland China affiliates say they are exploring strategies to safeguard personal assets, in case legal and regulatory challenges facing the firms ever spill over into any financial or legal burdens for themselves.
For auditing firms in Hong Kong, it’s common to register as unlimited partnerships as PwC’s local affiliate did, which means partners share in any liabilities as well as profits. Moreover, so-called equity audit partners own stakes in the business. These structures also leave them open to potential legal liability, which can carry on even if they leave the roles, according to a partnership ordinance in Hong Kong.
Why Singapore Wants to Create an Asian BlackRock
Singapore’s latest push to bolster its position as a global finance hub centres on creating an Asian version of BlackRock, The Financial Times reported.
Many in the city-state believe that Singapore needs an investment manager with a global presence to match its status as an international finance centre. The aim is for state-owned investor Temasek to transform its asset manager Seviora, which has maintained a low profile even in its home market since it was founded six years ago.
A New Corporate Migration is Taking Shape in Southeast Asia
A raft of companies has been shifting operations to Malaysia from Singapore in recent months, illustrating a broader trend of global mobility that has firms seeking jurisdictions with lower costs, tax incentives and access to larger markets, CNBC reported.
Apparel giant H&M announced in May that it would relocate its Southeast Asian headquarters from Singapore to Kuala Lumpur, affecting 78 positions. Meanwhile Heineken said in March that it would move large-scale production for its Asia Pacific Breweries Singapore to regional breweries in Malaysia and Vietnam.
Indonesia Roundup
Indonesia Market Rout Resumes as Interest Rate Hike Bets Mount
Indonesia’s bonds and stocks resumed their sell-off on Thursday, underscoring expectations that the central bank will have to raise interest rates again to limit capital outflows, Bloomberg reported.
The benchmark 10-year yield surged 10 basis points to 7.45%, near its highest level since 2022, while the five-year yield ended three basis points higher.
“Confidence is one of those things that is easy to lose, but it takes a little bit longer to regain the market’s trust,” Thu Ha Chow, head of fixed income for Asia at Robeco, told Bloomberg Television. “We’re seeing the beginnings of a turnaround story for them right now, but not quite there yet.”
Danantara Sets Final Price Guidance at 5.35% and 5.95% for Dollar Bonds
Danantara Investment Management has set the final price guidance for a planned USD bond sale at 5.35% for five-year notes and 5.95% for 10-year notes, Reuters reported.
That was 35 basis points tighter than the initial guidance of around 5.7% for the five-year notes and about 6.3% for the 10-year notes based on an earlier term sheet seen on Thursday.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.