Asia Roundup
Bank Shares Drop After Indian Regulator Tightens Bad Loan Norms
Shares of Indian lenders fell after the regulator tightened rules that will require banks to set aside more capital against potential losses on their loan and credit portfolios, Bloomberg reported.
Under the new rules that are in alignment with global norms, banks will be required to divide loans into three stages depending on future risk assessment, the Reserve Bank of India (RBI) said in a statement.
Moving to an expected credit loss framework, which the RBI had proposed in early 2023, would mean banks across the board will have to set aside more capital for future loan losses, potentially leading to lower profits and weighing on their net worth, analysts said.
Why China Blocked the Meta-Manus Deal
China’s move to block Meta’s acquisition of AI startup Manus is emerging as a test of how far Beijing is willing to extend control over technology it views as strategically Chinese, even after companies move offshore, CNA reported.
The deal had been completed through a Singapore-registered entity after Manus shifted its headquarters there late last year, yet it still fell within the reach of Chinese regulators.
Experts say the case reflects a broader shift in how Beijing defines its jurisdiction over technology, signalling that relocating offshore may no longer shield Chinese firms if their technology, talent and data remain tied to China.
Khazanah Leads Malaysia’s First Tokenised Sukuk Pilot
Khazanah Nasional Berhad, in collaboration with the Securities Commission Malaysia, has successfully priced Malaysia’s first tokenised sukuk with a nominal value of RM 100 million (USD 25.3 million), according to its press release.
This marked an important step in the application of digital technologies to support the future development of Malaysia’s domestic capital market, according to Khazanah.
Indonesia Roundup
Indonesia’s eFishery Founder Gets Nine Years’ Jail in Fraud Case
An Indonesian court sentenced Gibran Huzaifah, the founder of aquaculture startup eFishery, to nine years in prison after finding him guilty in a fraud case tied to the company’s inflated financial reports, The Business Times reported.
Acrostics Asia wrote more than a year earlier:
📒 Quick Take: eFishery’s Can of Questions (30 January 2025)
The draft report authored by FTI Consulting – which was engaged to investigate a whistleblower complaint – is like a financial horror novel, with everything from double books and round-tripping of funds to fictitious partnerships and inflated capex.
However, the newsflash is on page 19 of the report: Based on the internal system, the net book value of fish feeders in inventory and fixed assets was only USD 2.1 million.
In short, if eFishery’s shareholders were to liquidate the startup that was valued at USD 1.4 billion in its latest fundraising, they might only get a fraction of their investments back.
Indonesia Telco Pivots to Private Debt After Public Bond Rethink
Indonesian telecommunications firm Solusi Sinergi Digital is turning to private credit after shelving plans to issue public bonds amid lukewarm investor appetite, Bloomberg reported, citing people familiar with the matter.
The company, also known as Surge, is looking to raise USD 300 million via senior secured notes, which are expected to be privately placed with a small number of investors.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.