Asia Roundup
China Steps Up Oversight of Bond Rating Terminations
Chinese regulators are increasing scrutiny of companies seeking to terminate bond credit ratings amid concerns some issuers may be using the practice to avoid downgrades, Caixin reported.
Some rating agencies were recently instructed to report issuer-requested rating terminations to regulators within three working days. Agencies must explain the reasons for the termination and provide details on the issuer’s operations, financial condition and credit outlook.
SoftBank Founder’s Starstruck Bet on OpenAI Raises Concern
Some SoftBank officials are anxious over its ballooning commitment to OpenAI, now totaling more than $60 billion, and what they see as their leader’s starstruck devotion to Sam Altman, Bloomberg reported.
A key concern mentioned by these people is that Son is focusing too much of SoftBank’s capital on a single company, especially one that’s lately faced business, reputational and legal problems. SoftBank has sold off assets including its stake in AI chipmaker Nvidia and hasn’t been investing in rival AI models.
Creditors to Submit Claims for Singapore’s Dromond Shipping, Related Firms
The liquidators of Singapore’s Dromond Shipping and related companies issued a notice to their creditors to submit claims on or before 15 June, The Manifold Times reported.
The other companies are Tidewater Emergency Response Services, Tidewater Production Solutions and Tidewater Salvage.
Indonesia Roundup
Indonesia unveils plan to centralise control of commodity exports
Indonesia unveiled a sweeping plan to centralise exports of key commodities such as palm oil and coal, aiming to boost government revenue through tighter control of the sale and pricing of its abundant natural resources, Reuters reported.
Sovereign wealth fund Danantara will oversee a trading company designated to channel exports, starting with palm oil, coal and ferroalloys after a three-month transition. The government may add more commodities at three-month intervals.
Bank Indonesia Surprises With a Half-Point Hike to Defend Rupiah
Indonesia’s central bank delivered a larger-than-expected interest-rate increase to intensify its defense of the rupiah after the currency tumbled to successive record lows this month, Bloomberg reported.
Bank Indonesia raised the rate by 50 basis points to 5.25% on Wednesday, the first such move since 2022. The move was anticipated by only one economist in a Bloomberg News survey. Twenty-five analysts had expected a quarter-point hike, while 15 predicted a pause.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.