The Asia Eight

Daily must-reads from the world’s most dynamic region

November 26, 2020

1 TOP STORY: Defaults lead China to pursue poor issuers

2 ASIA MARKETS: Nikkei 225, HSI and CSI300 climb

3 NEWS: Scandal-hit Baoshang Bank faces bankruptcy

4 ATF BIG PICTURE: New app bans deepen India-China tensions

5 ATF TV: Apple's widening presence in India examined

6 NEWS: Insurers hail their role in greening of Asia

7 NEWS: ByteDance wins more time to sell TikTok

8 COMMENT: Outlook for China's growing debtload

01 Top Story China cracks down on errant issuers

Regulators unhappy at recent spate of bond defaults vow to tighten rules to prevent fraudulent claims in issuance prospectuses and over borrowing. Issuers must "strictly abide by laws, regulations and market rules, and guard against moral risks”.

02 Asia Markets

Nikkei 225 rises 0.9% to 26,537.31; Hang Seng Index climbs 0.6% to 26,819.45; CSI300 adds 0.2% to 3,369.73.33

03 China bank wound up

Baoshang Bank has become the first commercial Chinese lender to be declared bankrupt, after regulators took it over saying it posed too great a credit risk to investors and customers. The bank has been cloaked in scandal surrounding billionaire Xiao Jianhua’s Tomorrow Group.

04 ATF Big Picture App bans add to Sino-Indian woes

Another 43 Chinese apps are added to India’s sanctions list against its giant neighbour and major trading partner. Efforts to delink from China’s economy is adding fuel to tensions that began with renewal of clashes over a disputed border. 

05 ATF TV Apple in India

Analysts say outlays by three major manufacturers are likely to rev up sales of its popular handsets once iPhones start being made at sites around the country, although many will be exported as well. ATF Chief India Writer Indrajit Basu speaks to ATF TV.

06 Green insurance

Insurers say they are playing a vital – if quiet – part in helping the Asia-Pacific region reduce its carbon footprint be cutting their ties to polluters and big emitters of greenhouse gases.

07 TikTok slows clock

The Trump administration has relented again and given tech giant ByteDance another seven days to sell its stake in the TikTok social media app, which the outgoing president has declared a national security risk.

08 Comment

"Debt sustainability issues will depend on long term nominal growth and interest rate prospects. Moreover, the government deficit stemming from slower fiscal revenue growth and the increased pension spending amid population ageing are also likely to push up China’s public debt. Thus, we expect China’s debt-to-GDP to continue to pile up, which means that China will join one more league table, namely that of the high indebted countries."

Alicia Garcia Herrero, Chief Economist, Asia Pacific, Natixis