Asia Roundup
China’s $3 Trillion of Hidden Bad Debt Prolongs Economic Pain
China’s official bad loan ratio is 1.5%, but most economists say the true ratio is significantly higher, with some estimates as high as 10% or 20%, Bloomberg reported.
While the leniency, largely condoned by regulators in Beijing, has helped maintain financial stability over the past few years, it also means the banking system is recycling capital into unproductive companies rather than spurring real growth in healthy firms.
Acrostics Asia wrote on 8 March 2026 that the developers, banks, local government financing vehicles (LGFVs) and household wealth are all tied together in China, hampering official efforts to undo this Gordian knot.
💼 Brief Take: China’s Debt Fabric
“Unwinding these strands means someone has to take a loss, so the typical route has been to kick the can down the road. However, the proliferation of “zombie companies” is sucking resources from more promising businesses and stifling a broader economic recovery.”
NCLT Mumbai Rejects Johnson Screens’ Insolvency Plea Against Shapoorji Pallonji Over Interest Dispute
The Mumbai Bench of the National Company Law Tribunal (NCLT) declined to admit an insolvency plea filed by Johnson Screens (India) against Shapoorji Pallonji, BW Legal World reported.
The tribunal found that the claim failed to meet the statutory threshold under the Insolvency and Bankruptcy Code. The dispute arose from supply contracts linked to a Lucknow project, according to BW Legal World.
Indian Court Freezes Rolta Chairman’s Assets in Enforcement of New York Contempt Judgment
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.
Indonesia Roundup
China Chamber Writes to Prabowo on Business Climate Concerns
The China Chamber of Commerce in Indonesia has sent a letter to President Prabowo Subianto urging the government to improve Indonesia’s business climate, citing growing concerns among Chinese investors over regulations, law enforcement, and policy uncertainty, Tempo reported.
The organization complained that businesses operating in Indonesia are burdened by overly strict regulations, excessive law enforcement, as well as corruption and extortion involving certain authorities.
Indonesian Stocks Slide After MSCI Removes Six Companies From Index in Review
Indonesia’s benchmark stock index slid to a one-year low and shares of some companies owned by the nation’s richest families tumbled, after MSCI removed six firms from its Indonesia global standard index, Reuters reported via CNA.
The index provider announced it had removed Amman Mineral International, Chandra Asri Pacific, Dian Swastatika Sentosa, Barito Renewables Energy, Petrindo Jaya Kreasi and Sumber Alfaria Trijaya from the MSCI Indonesia Index following a quarterly review.
Indonesia Wealth Fund Taps Mandiri Banker Ramadhana as CEO
Indonesia Investment Authority (INA) has hired investment banker Oki Ramadhana as its new chief executive officer, filling a leadership vacuum at the country’s first sovereign wealth fund, Bloomberg reported, citing people familiar with the matter.
Ramadhana previously served as president director at Mandiri Sekuritas, after holding a similar role and heading investment banking at HSBC Sekuritas.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.