Asia Roundup
China’s Property Slump Far from Over Despite Country Garden’s Return to Profit
A string of earnings reports from major Chinese property developers released this week is doing little to suggest the sector’s prolonged slump is over, despite a return to profit by debt-ridden Country Garden, The Business Times reported.
Guangdong-based Country Garden, which was once China’s largest developer by contracted sales, swung back into the black in 2025 for the first time in three years. However, analysts said the one-off improvement was driven mainly by debt restructuring rather than a recovery in its core business operations.
Results from other major Chinese developers, including embattled state-linked Vanke and state-owned China Overseas Land and Investment, suggest that China’s property sector remains under strain.
Uzbekistan Places USD 1 Billion Equivalent of Bonds
Uzbekistan placed its “largest-ever sovereign international bonds denominated in the national currency”, amounting to the equivalent of USD 1 billion, in global markets at a historic low interest rate of 12.25%, according to its official statement.
Interest rates on Uzbekistan’s previous issuances of three-year international bonds in its national currency stood at 16.625% in 2024 and 15.5% in 2025.
India’s SP Group Gets Relief on $3.4 Billion Private Credit Debt
A unit of India’s Shapoorji Pallonji Group has secured approval from its major lenders to ease a key debt condition after falling collateral values pushed it closer to its borrowing limits, Bloomberg reported.
Its financing arm, Porteast Investment, will temporarily raise its loan-to-value limit to 40% from 34% for four months through 15 July.
The pressure follows a decline in the derived value of Tata Sons shares pledged as collateral. Tata Sons, the unlisted holding company of Tata Group, gets much of its value from its stake in Tata Consultancy Services (TCS). Shares of TCS have slumped more than 22% so far this year amid a broader selloff in software stocks.
AirAsia X to Raise Fares, Cut Capacity over Middle East War
Budget carrier AirAsia X said it will need to raise fares and cut some flights in places where it can no longer cover fuel costs, with oil prices surging due to the conflict in the Middle East, Reuters reported via CNA.
The company has raised fuel surcharges by about 20%, while fare prices have increased between 31% and 40%.
Indonesia Roundup
Indonesia Raises Jet Fuel Surcharge, Flight Ticket Prices as Oil Soars
Indonesia announced a 28-percentage-point rise in the surcharge on jet fuel, and said it will allow airlines to raise the domestic ticket price – which the government caps – by up to 13%, AFP reported via The Straits Times.
As global oil prices soar on the back of the Middle East war, Coordinating Minister for Economic Affairs Airlangga Hartarto told reporters the jet fuel surcharge would rise from 10 to 38%, and the base ticket price between 9 and 13%.
Danantara Pushes Asset Manager Merger With $159 Million Deal
Indonesia’s sovereign wealth fund is advancing a plan to combine the asset management units of state-owned lenders in order to boost their regional competitiveness, Bloomberg reported.
Danantara unit Danantara Asset Management signed deals to acquire the investment management subsidiaries of Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Permodalan Nasional Madani, subject to regulatory approvals, according to stock exchange filings.
The wealth fund will acquire stakes for a total of IDR 2.7 trillion (USD 158.8 million), as it seeks to create “a champion with strong competitiveness,” Bloomberg reported.
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