2025-09-23 04:35

BANGKOK, Sept 23 (Reuters) - Thailand's central bank on Tuesday said it had improved its record keeping for its balance of payments, and said it had found some unexplained fund flows. The announcement came after concerns were raised that large net errors and omissions in the country's balance of payments could be a factor pushing up the baht to a four-year high against the U.S. dollar. Sign up here. The strengthening of the baht was driven by the weak dollar and a current account surplus, said Assistant Governor Chayawadee Chai-anant, adding that net errors and omissions were not too high. Net errors and omissions for 2024 were revised to $7.3 billion from $15.2 billion stated in March. The figures did not reflect illicit business activity, said Chayawadee. https://www.reuters.com/world/asia-pacific/thai-central-bank-says-has-improved-bop-record-keeping-2025-09-23/

2025-09-23 04:13

JAKARTA, Sept 23 (Reuters) - Indonesia's parliament on Tuesday approved President Prabowo Subianto's proposed budget for 2026, which includes spending of 3,842.7 trillion rupiah ($231.5 billion) and forecasts the fiscal deficit at 2.68% of gross domestic product. The budget, which the parliament speaker put to a vote, assumes economic growth of 5.4%, up from the 2025 target of 5.2%, and has a revenue target of 3,153.6 trillion rupiah. Sign up here. In total, proposed spending for 2026 is 9% higher than estimated total spending for 2025, with the revenue target also up about 10% from the 2025 outlook. The budget deficit for 2026 would be lower than the forecast for this year at 2.78% of GDP, also below a limit of 3% set by law. Ahead of the vote, the chair of the budget committee, Said Abdullah, told parliament the budget would enable the government to begin a turnaround. "The 2026 state budget is an important asset for the government to begin turning things around, kickstarting industrial revival, and revitalising national industries that can support the provision of basic needs for the people, such as the textile, agriculture, and energy industries," he said. The budget includes an expansion of Prabowo's flagship programme of free meals for students and pregnant women, and increased defence spending. In August, when the budget proposal was first presented to parliament, the free meals scheme was costed at 335 trillion rupiah in 2026, nearly double the allocation for this year, and there was a 37% increase in defence spending to 335.3 trillion. ($1 = 16,600 rupiah) https://www.reuters.com/world/asia-pacific/indonesia-parliament-vote-governments-231-billion-2026-budget-2025-09-23/

2025-09-23 04:04

CSRC advises brokerages to pause RWA tokenisation in Hong Kong, sources say Hong Kong aims to be a digital assets hub amid China's cautious stance Chinese firms' shares rally on virtual asset business interest in Hong Kong Sept 22 (Reuters) - China's securities watchdog has advised some local brokerages to pause their real-world asset (RWA) tokenisation business in Hong Kong, said two sources, signalling Beijing's concerns of a euphoric drive towards a booming digital assets market offshore. The RWA tokenisation process usually converts traditional assets such as stocks, bonds, funds and even real estate, into digital tokens traded on a blockchain. A raft of Chinese firms, including brokerages, have launched RWAs in Hong Kong over the past few months. Sign up here. At least two leading brokerages have received informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks to refrain from conducting RWA business offshore, said the sources with knowledge of the matter. One of the sources said the latest regulatory guidance is aimed at strengthening risk management of a new business and making sure the claims made by companies are backed by strong, legitimate businesses. Shares in top Chinese brokerages listed in Hong Kong, including Guotai Junan International (1788.HK) , opens new tab and GF Securities , lost between 2% and 7.25% on Tuesday, while the broader market (.HSI) , opens new tab was down 0.9% at the close of the morning session. The move comes as Hong Kong over the past year ramped up efforts to position the Asian financial centre as a digital assets hub, with many firms, including Chinese brokerages, preparing for the launch of virtual asset trading, investment advisory and virtual asset management. China, once the world's biggest bitcoin trading and mining centre, on the other hand, has taken a cautious approach towards digital assets after it banned cryptocurrency trading and mining in 2021 due to financial system stability concerns. Last month, Chinese regulators asked big local brokers to halt publication of research endorsing stablecoins in a bid to curb a surge in interest in the digital currency among domestic investors, Reuters has reported, citing sources. Beijing's latest move comes even as Hong Kong said in June its Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are conducting a legal review of RWA tokenisation, drawing on international experience. The global RWA market is currently worth around $29 billion, according to data provider RWA.xyz. China Merchants Securities, citing industry forecasts, said last month the figure could exceed $2 trillion by 2030. It was not immediately known how long the Chinese securities regulator's informal guidance to some brokerages on halting RWA business in Hong Kong would remain in force. The sources could not be named as they were not authorised to speak to the media. "HKMA has guidelines in place to govern sale and distribution of tokenised products by banks to protect investors," a HKMA spokesperson said in a statement to Reuters, without commenting on the CSRC's new guidance. The spokesperson said the "tokenisation space is rapidly evolving" and it is exploring the potential use cases through Project Ensemble, known as a "sandbox" project for tokenisation. The legal review of Hong Kong's tokenisation market will focus initially on the bond market, the spokesperson added. The CSRC and FSTB did not repond to Reuters' request for comment. The Securities and Futures Commission (SFC) of Hong Kong declined to comment. VIRTUAL ASSET FRENZY Chinese brokerage GF Securities' Hong Kong unit in June launched "GF tokens", a suite of yield-generating products that are backed by the prices of U.S. dollar, Hong Kong dollar and offshore renminbi, its partner HashKey Chain said at that time. China Merchant Bank International, a subsidiary of China Merchant Bank, last month assisted Shenzhen Futian Investment to raise 500 million yuan ($70.29 million) via the issuance of a RWA-based digital bond, CMBI has said in a statement. Spokespersons at GF and CMBI did not respond to Reuters' request for comment on whether they have received any regulatory guidance on their RWA plans. Besides brokerages, Chinese property developer Seazen Group (1030.HK) , opens new tab also said last month it was setting up an institute in Hong Kong to push RWA tokenization. Hong Kong's recent introduction of its stablecoin regime has fuelled a wave of crypto enthusiasm. The Hong Kong Monetary Authority (HKMA) said earlier this month 77 firms have expressed interest in applying for a license as of August 31. Shares in Chinese companies, which expressed an interest in foraying into virtual asset business - a wider sector that covers trading and investments of digital assets, stablecoin and tokenisation in Hong Kong, have rallied in the recent past. State-owned Guotai Junan International shares once shot up more than 400% after the broker said that it had obtained regulatory approval in Hong Kong to offer cryptocurrency trading services in June. Shares of Fosun International jumped as much as 28% on Aug 12 on the news that its chairman Guo Guangchang, together with Fosun's stablecoin team, met with top Hong Kong government officials earlier in the month. ($1 = 7.1136 Chinese yuan renminbi) https://www.reuters.com/legal/government/china-ask-brokers-pause-real-world-asset-business-hong-kong-sources-say-2025-09-23/

2025-09-23 03:28

SEOUL, Sept 23 (Reuters) - South Korean President Lee Jae Myung said negotiations with the U.S. on tariffs have stirred concerns in the foreign exchange market but he was confident the two sides will reach a solution, a statement from Lee's office said on Tuesday. Lee made the comments during a meeting with some members of the U.S. Congress in New York on Monday while attending the United Nations General Assembly meeting this week, the statement said. Sign up here. "President Lee said there is concern that instability can arise in South Korea's foreign exchange market during the course of tariff negotiations with the U.S. but the two sides will be able to find a solution that ensures commercial rationality," it said. South Korea is in talks to finalize a trade deal with the United States to lower import duties imposed by President Donald Trump. Lee has said a huge investment from South Korea in the U.S. proposed as part of the deal could impact the country's foreign exchange reserves. https://www.reuters.com/world/asia-pacific/south-korean-president-says-us-tariffs-talks-worrying-fx-market-2025-09-23/

2025-09-23 00:27

Hong Kong raises typhoon signal to third highest, schools and businesses shut Ragasa disrupts 700 flights, Hong Kong Observatory warns of sea surge Southern Chinese cities order evacuations, shelters activated HONG KONG, Sept 23 (Reuters) - Hong Kong shut down ahead of Super Typhoon Ragasa on Tuesday, the world's most powerful tropical cyclone this year, with authorities urging people to stay at home, while most passenger flights were due to be suspended until Thursday. People piled into supermarkets, leaving little on the shelves, as panic buying set in and residents stocked up on necessities for fear that shops could be closed for two days. Sign up here. Windows in homes and businesses across the city were taped up, with residents hoping it could help reduce the impact of any shattered glass. Ragasa, packing hurricane-force winds of up to 220km/h (137 mph), is posing a "severe threat to the coast of Guangdong", the Hong Kong Observatory said, referring to the Chinese province that neighbours the financial hub. It will maintain super typhoon intensity as it edges closer to the coast of Guangdong, and as it impacts Hong Kong, mainland China and Taiwan, after sweeping through the northern Philippines on Monday. It is expected to make landfall along Guangdong's coast from midday to late Wednesday. Guangdong authorities evacuated over 770,000 people, state broadcaster CCTV said, adding that more than one million people are expected to be relocated across the province on Tuesday. Hong Kong issued the typhoon signal 8, its third highest at 2.20 p.m. (0620 GMT), which urges most businesses and transport services to shut down. More than 700 flights have been disrupted, including in the neighbouring gambling hub of Macau and in Taiwan. The weather is expected to deteriorate rapidly later on Tuesday and the observatory said it will assess whether to issue a higher warning late on Tuesday or early Wednesday. Hurricane-force winds offshore and on high ground were likely in Hong Kong on Wednesday, with heavy rain expected to lead to a significant storm and sea surge in the densely packed city. It warned of rising sea levels, which it said would be similar to those seen during Typhoon Hato in 2017 and Typhoon Mangkhut in 2018, both of which caused billions of dollars in damage. Water levels will rise about two metres (six feet) along Hong Kong's coastal areas and maximum water levels could reach four to five metres (12-15 feet) in some areas, the observatory said, urging residents to take appropriate precautions. Local authorities handed out sandbags for residents to bolster their homes in low-lying areas, while many people stockpiled daily necessities. A 35-year-old resident surnamed Mak said he had already bought some groceries but still needed to get more and was preparing his home for the typhoon. "We shut the windows and doors closely at home and checked if there is leaking," he said While some businesses were hoping to profit from people working from home, with one bar on the outlying island of Lantau offering 20% off all drinks throughout a T8 signal. Hong Kong's Stock Exchange will remain open. It changed its policy late last year to continue trading whatever the weather. STORM SURGES At Ragasa's peak intensity on Monday, maximum sustained winds near its eye topped 260 kph (162 mph), making it the world's most powerful Category 5 storm in 2025. The typhoon has since weakened slightly but is still capable of wreaking havoc on the densely populated Chinese coast as a Category 4 typhoon.Chinese authorities have activated flood control measures in several southern provinces, warning of heavy rain from late on Tuesday. More than 11 cities in Guangdong, including technology hub Shenzhen and coastal city Zhuhai had suspended work, transport services and schools due to warnings of storm surges and high waves. China's Environmental Forecasting centre said that coastal waters off Guangdong would be hit by huge to extremely rough waves with heights of up to seven metres (21 feet). Authorities in Shenzhen have prepared more than 800 emergency shelters, while in the city's Nanshan district, teams were chainsawing tree branches along main roads in preparation for the typhoon. “It’s just the bigger ones where there’s a risk. We’ll be out all afternoon all over the district,” said a worker surnamed Zhang, surrounded by piles of logs from behind a taped-off area of pavement Residents in the world's largest gambling hub of Macau also braced for significant impact. All its casinos will be forced to shut by 5.00 p.m. (0900 GMT) when the former Portuguese colony lifts its typhoon signal to 8. Taiwan logged almost 60 cm (24 inches) of rainfall in its mountainous east and reported 25 people injured, while transport disruptions continued for a second day on Tuesday with 273 flights cancelled. https://www.reuters.com/business/environment/hong-kong-braces-super-typhoon-ragasa-schools-businesses-shut-2025-09-23/

2025-09-23 00:08

SINGAPORE, Sept 23 (Reuters) - Thailand is set for a record decline in electricity output this year as mild weather and a slowing economy are reducing demand, government data shows, putting Southeast Asia's top LNG importer on track for its steepest decline in purchases of the fuel. Power generated and imported to supply the country of over 70 million people fell 5.4% annually in the seven months through July, official data showed, nearly twice as steep as the 2.8% slump in January-July 2020 due to coronavirus-linked lockdowns. Sign up here. An annual decline in output would be only the fourth in the nearly four decades for which official data is available, as fewer days of extreme heat due to frequent rainfall slashed air conditioning use. Raksit Pattanapitoon, analyst at Rystad Energy, said weather is "by far the most significant driver" of power demand in Thailand this year, with all other factors including politics and economic growth lagging "significantly". RESIDENTIAL, INDUSTRIAL DEMAND FALL Residential power demand - which accounts for 31% of annual consumption - fell over 7% in the seven months through July, the steepest decline on record and far outpacing a 2.8% decline in industrial and commercial demand, which make up over two-thirds of Thailand's annual electricity use, government data showed. Electricity demand has grown due to higher air-conditioning use in recent years. The World Bank expects Thailand's economic growth to slow to 1.8% this year and 1.7% next year due to weaker exports, a slowdown in tourism and political uncertainties that could hold back public investments. "This year will be the first since 2020 when Thailand will not record a new peak demand after averaging 6.2% growth from 2021-2024," Pattanapitoon said. LOWER GAS-FIRED POWER Electricity generated from natural gas, which accounts for 56% of Thailand's power output, fell 12% through July, putting it on track for its steepest decline ever and the first drop in annual LNG imports since 2014, government data showed. LNG shipments, about two-thirds of which supply utilities, plunged 15.3% annually to 7.2 million metric tons in the eight months through August, data from analytics firm Kpler showed. Thailand increased output from coal-fired power plants, while hydropower generation and imports from neighboring Laos rose due to bountiful rains, official data showed. Coal use also rose as Western sanctions choked exports of piped gas from neighbouring Myanmar, said Ying-Chin Chou, LNG analyst at consultancy Energy Aspects. A decline in pipeline gas supply, driven by falling imports from Myanmar and reduced domestic production next year, is expected to help fuel a recovery in LNG demand, she said. "We expect Thailand LNG demand to rise in 2026, supported by increasing volumes under term contracts with Oman and the U.S. These contracts will enhance the stickiness of LNG imports," Chou said. ELECTRICITY DEMAND TO RISE Non weather-related power demand is expected to grow next year, analysts said. "Given the pace of transport electrification and upcoming data center projects, we expect electricity use continuing to rise regardless of economic growth," Rystad's Pattanapitoon said. https://www.reuters.com/sustainability/climate-energy/thailand-set-record-plunge-annual-power-output-lng-imports-2025-09-23/