Asia Roundup
India’s Bad Bank Framework Set for Overhaul with NARCL-IDRCL Merger
Five years after being floated, India’s bad bank framework is set for a structural change, with plans underway to merge the National Asset Reconstruction Co (NARCL) and India Debt Resolution Co (IDRCL), The Economic Times reported, citing people familiar with the matter.
China’s Trust Firms Pivot From Risky Debt After Crackdown
Standardized assets such as stocks and bonds accounted for more than half of China’s fund trusts by value as of June 2025, Caixin reported, citing industry data. The change highlights a critical transformation in China’s multitrillion-dollar trust industry, once the core of the country’s shadow banking system.
Driven by a regulatory crackdown on risk in the financial system, the industry is being forced to abandon its old, highly profitable model of funneling funds into non-standard debt for real estate projects and local governments in favor of becoming genuine asset managers that compete on performance, according to Caixin.
Cathay Pacific Counts on Southeast Asia’s Burgeoning Middle Class to Drive Growth
Hong Kong-based Cathay Pacific is counting on Southeast Asia’s fast-expanding middle class to power its next phase of growth, even as geopolitical tensions continue to disrupt global aviation flows, The Business Times reported.
Despite near-term headwinds from the Gulf conflict, the carrier said growth will come from its established key markets of China and North Asia – but Southeast Asia will also be increasingly important.
Indonesia Roundup
Prabowo Says Indonesia Never Pledged $1 Billion to Board of Peace
Indonesia will not be paying USD 1 billion to US President Donald Trump’s Board of Peace, President Prabowo Subianto said, emphasising that Jakarta’s role is limited to peacekeeping support, CNA reported.
His comments were aimed to dispel concerns that Indonesia’s state budget could be burdened by the financial obligation, following remarks from Finance Minister Purbaya Yudhi Sadewa that the contribution could be sourced from the defence ministry’s budget.
Indonesia Targets Investment Banks for ‘Alleged Capital Market Crimes’
Indonesia is scrutinising investment banks as it looks to regain investor confidence after a downgrade warning from index provider MSCI in January triggered the country’s worst market rout in decades, Financial Times reported.
In recent weeks, authorities have penalised Singapore’s UOB Kay Hian and opened investigations into the Indonesian units of South Korean financial groups Mirae Asset and Shinhan Bank for their roles in initial public offerings and related trades.