Asia Roundup
China’s Tilt to Bonds From Loans Gives PBOC Broader Easing Tool
The increasingly large role of China’s bond market as a source of credit for the nation’s borrowers has offered the central bank an important channel for broad reductions in borrowing costs, Bloomberg reported.
Bond financing, including government and corporate debt, accounted for 30% of all outstanding credit stock in May, the highest on record, the latest official data show. For new credit, bonds surpassed loans in scale for the first time in 2025 by a modest margin of about 500 billion yuan ($74 billion).
Australia Probes Private Credit Lenders, Warns on Valuations
Australia’s corporate watchdog is investigating a number of private credit funds and warning industry managers to make sure that asset valuations are “grounded in realistic assumptions” before an end-of-month reporting deadline, Bloomberg reported.
“We’re absolutely 100% unequivocally ready, willing and able to use our full suite of regulatory enforcement tools,” Simone Constant, Commissioner of the Australian Securities & Investments Commission, said in an interview. “It is such an important area because private credit is growing in importance in so many investors’ investment portfolios.”
The industry faces its “first test” as liquidity tightens, and borrower stress puts a spotlight on valuations and governance, ASIC said in a separate statement. Multiple “enforcement investigations” are underway, it added.
Sun PhuQuoc Airways Announces Ambitious International Expansion
Vietnam-based full-service carrier Sun PhuQuoc Airways has announced goals for expansion, both in terms of international routes to Asia and its fleet, The Business Times reported.
At the launch of its Singapore-Phu Quoc route, representatives marked out target markets in the region for the airline. It aims to begin flying new routes from Vietnam to South Korea, China, Japan, Thailand, Russia, Mongolia and Kazakhstan in 2026.
Indonesia Roundup
Quasi Reset
Flag carrier Garuda Indonesia’s aircraft maintenance unit, Garuda Maintenance Facility Aero Asia (GMF AeroAsia), has unveiled plans for a quasi-reorganization, Jakarta Globe reported on 17 June 2026.
The move is aimed at eliminating GMF’s negative retained earnings “by setting it off with certain financial posts of the company in accordance with the prevailing capital market regulations”, according to the report.
GMF is taking a similar path as Indonesian coal miner Bumi Resources, which also pursued a quasi-reorganization to reset its balance sheet last year. Acrostics Asia wrote on 4 June 2025 that a quasi-reorganization is an accounting treatment that gives a so-called fresh start to a company by eliminating its deficits.
The reorganization paved the way for Bumi to start paying dividends to its shareholders, raise more funding, and increase its trading liquidity.
In the case of GMF, the aircraft maintenance company hopes that eliminating its negative retained earnings would make its financial structure “more agile and competitive”.
However, GMF would still need an operational turnaround to achieve a recovery beyond an accounting reset.
👉🏻 Acrostics Asia has accurately plotted Garuda’s trajectory – including the capital injection from Indonesian sovereign fund Danantara – every step of the way.
Glencore, Trafigura to Invest in Merdeka’s Hong Kong Listing
Glencore, Mercuria Energy Group and Trafigura Group are among key investors planning to buy securities in the Hong Kong listing of Indonesian gold miner Merdeka Gold Resources, Bloomberg reported.
The commodity trading giants are participating as cornerstone investors, which get guaranteed allocation in a deal in exchange for holding their allocations for a period of time, Merdeka Gold said in its listing document.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.