EM ASIA CREDIT: International Container Terminal Service

Today’s auction showed solid pricing for ACGBs, with the weighted average yield coming in 0.45bps below prevailing mid-yields, according to Yieldbroker. However, the cover ratio nudged lower to 3.3625x from 3.4444x at the previous auction. 

• As noted in our preview, the current yield for this bond was approximately 10bps below the level of the previous auction and 60bps below the high recorded in early November 2024.
• The 3/10 yield curve was around the same level as the previous auction but sat around 20bps below its recent high.
• Following the auction, both the cash line and XM remained relatively unchanged.

Taiwan enjoys $6.6bn of inflows over last six trading days. 

• South Korea: Recorded inflows of +$106m yesterday, bringing the 5-day total to -$1,921m. 2025 to date flows are -$9,262. The 5-day average is -$384m, the 20-day average is +$106m and the 100-day average of -$76m.
• Taiwan: Had inflows of +$1,685m yesterday, with total inflows of +$5,423 m over the past 5 days. YTD flows are negative at -$4,244. The 5-day average is +$1,085m, the 20-day average of +$444m and the 100-day average of -$4m.
• India: Had inflows of +$97m as of the 30th, with total inflows of +$1,401m over the past 5 days.  YTD flows are negative -$8,155m.  The 5-day average is +$280m, the 20-day average of +$131m and the 100-day average of -$5m.
• Indonesia: Had outflows of -$43 yesterday, with total outflows of -$54m over the prior five days.  YTD flows are negative -$3,280m.  The 5-day average is -$11m, the 20-day average -$24m and the 100-day average -$31m.
• Thailand: Recorded outflows of -$24m yesterday, with inflows totaling +$50m over the past 5 days. YTD flows are negative at -$2,361m. The 5-day average is +$10m, the 20-day average of -$13m and the 100-day average of -$21m.
• Malaysia: Recorded inflows as of +$26m yesterday, totaling +$65m over the past 5 days. YTD flows are negative at -$3,703m. The 5-day average is +$16m, the 20-day average of -$13m and the 100-day average of -$20m.
• Philippines: Recorded inflows of +$17m yesterday, with net inflows of +$3m over the past 5 days. YTD flows are negative at -$577m. The 5-day average is +$1m, the 20-day average of -$3m the 100-day average of -$5m.

China’s recent revision of the Anti Unfair Competition Law reflects clear policy guidance for combatting 'involuted' competition, according to Liu Xu, researcher at the National Institute for Strategic Studies at Tsinghua University. Experts interviewed by Yicai noted the law prohibits platform operators from forcing merchants to sell below cost and prohibits large enterprises from defaulting on payments to small and medium-sized enterprises. Zhong Gang, director of Competition Law Research Institute at East China University, said the newly added provisions allow the government to directly regulate platform operators.