☀️ Bright Spot #3
China’s Debt Clearance | Malaysia’s Cross-Border Insolvency Milestone | Australia’s Loan Market Shines | Goldwind Bets on Mongolia’s Wind Energy | Mongolia Postcard
Two rays of light recently shone in Asia’s restructuring world: China is moving to clear the unpaid bills that have clogged its system for years, while Malaysia’s Senate has passed the cross-border insolvency bill.
The devil is always in the execution, but these restructuring developments have the potential to become full-fledged bright spots.
Among other positive news, Australia’s loan market is soaring and Mongolia attracts a major wind power investment.
💼 China’s Debt Clearance
China may amend its bankruptcy framework to create an exit for bad debt, while some state-owned banks could absorb some of the local government arrears.
📜 Malaysia’s Cross-Border Insolvency Milestone
Malaysia’s Dewan Negara passed a bill to increase cooperation with other nations involved in cross-border insolvency. It incorporates international principles from the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.
💰 Australia’s Loan Market Shines
Deal volumes have surged this year – as has competition, according to a note published by the Asia Pacific Loan Market Association (APLMA). Liquidity is deepening as more Asian lenders deploy capital into Australia, leading to better terms and tighter pricing for borrowers.
🍃 Goldwind’s Mongolian Wind Bet
Goldwind Science & Technology, the world’s largest wind-turbine maker, plans to invest around CNY 18.9 billion (USD 2.7 billion) on a wind power project in Inner Mongolia.
🖼️ Mongolia Postcard
A friend of mine said I should include more pictures in my Bright Spot, so here it is. In May 2024, I spent a bit of time with a herdsman’s family and stayed in a Mongolian ‘ger’ (similar to a yurt).
Being close to nature is ingrained in their way of life, but it’s not like they completely shun technology or modern advancements. The family has a small solar panel to charge some household appliances as well as a motorbike to herd sheep.
