Asia Roundup
China Auditor Exposes Local Governments Faking Debt Cleanups
Some local governments in China have used deceptive tactics to mask billions of yuan in hidden debt, undermining Beijing’s sweeping campaign to defuse financial risks, Caixin reported, citing the country’s top auditor.
Despite a mandate to eliminate off-balance-sheet borrowing by mid-2027, local governments continued to accrue hidden liabilities, according to an annual report released by the National Audit Office.
The office said authorities in multiple provinces artificially reduced their hidden debt balances – in some cases by simply deleting records from the debt management system. Some local government financing vehicles falsely claimed to have resolved their debts.
India’s Shapoorji Pallonji Group Seeks Fresh Bond Extension as Refinancing Drags
India’s Shapoorji Pallonji Group has offered bondholders a 30-basis point fee in exchange for approving another extension on debt owed by its unit, Bloomberg reported, citing people familiar with the matter.
The group is seeking consent to allow Goswami Infratech to push back repayment of 143 billion rupees ($1.5 billion) worth of zero-coupon bonds by at least a month beyond their 30 June maturity date.
Vietnam Steers Funding to Vingroup, Sun Group, Masterise Megaprojects
Vietnam’s central bank has opened a special financing channel for 18 projects by Vingroup, Sun Group and Masterise, allowing banks to exclude new lending to those schemes from their annual credit-growth quotas, The Business Times reported.
The move gives banks more room to fund state-priority projects without formally lifting the system-wide credit target, which remains at 15% for this year.
Indonesia Roundup
Indonesia Weighs $2 Billion Cut to Prabowo’s Signature Free Meals Program
Indonesia is preparing to scale back President Prabowo Subianto's flagship free meals program, with officials weighing another budget cut of more than $2 billion along with reductions in kitchens and beneficiaries, Reuters reported, citing two sources familiar with the matter and an internal presentation.
Two sources familiar with the plans told Reuters the National Nutrition Agency (NNA), which runs the program, is targeting a reduction of at least 15% from its 268 trillion rupiah ($16 billion) budget this year – equivalent to about 40 trillion rupiah – after identifying inefficiencies. One of them said the cut could be 50 trillion rupiah.
Acrostics Asia wrote on 1 March 2026:
📒 Quick Take: Jakarta’s Third Rail
Indonesia’s fiscal deficit ceiling of 3% of GDP is like the “third rail” because visibly crossing it may cause some investors to jump off the train. Indonesia has built its reserves over the years to withstand capital outflows, but a stampede for the exit can erode these buffers faster than they can be replenished.
Firms Steer Danantara Indonesia’s USD 5 Billion MTN, USD 1.5 Billion Bonds
Linklaters, Clifford Chance and Hiswara Bunjamin & Tandjung, the Indonesian arm of Herbert Smith Freehills Kramer, have advised on Danantara Indonesia’s debut USD 5 billion global medium-term note (MTN) program and inaugural USD 1.5 billion bond issuance, Asia Business Law Journal reported.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.