The US Treasury expanded long-dated liquidity-support buybacks as federal debt passed $40 trillion. China proposed extending outbound-investment oversight to individuals, while Australia proposed tighter controls across superannuation advice, product distribution and transfers into self-managed funds.

Alibaba priced a $10.3 billion share placement to fund AI infrastructure, while SoftBank plans a JPY1 trillion (approximately $6.3 billion) retail bond for AI investment and debt repayment. MPS launched separate all-share offers for Banco BPM and Banca Generali, while Santander completed its $12.2 billion acquisition of Webster Financial.

Read more on the week’s key developments:

1. US Treasury expands long-dated buybacks as federal debt passes $40 trillion

The US Treasury announced on 19 August that it will at least double the maximum size of liquidity-support buybacks for nominal securities in the 10-to-20-year and 20-to-30-year maturity buckets. From 9 September, the limit for each operation will rise from $2 billion to at least $4 billion for the remainder of the quarterly refunding cycle ending 4 November. Treasury cited the volume of competitive offers received in previous long-dated operations.

Treasury said new issuance replaces securities bought back, so the programme is not expected to materially reduce privately held net marketable borrowing, and kept regular note and bond auction sizes unchanged in August. The median primary-dealer forecast indicated a $1.45 trillion funding shortfall across fiscal years 2027 and 2028 under current issuance settings. Total public debt has meanwhile passed $40 trillion for the first time, comprising approximately $32.27 trillion held by the public and $7.78 trillion in intragovernmental holdings.

2. Alibaba prices $10.3 billion share placement for AI infrastructure

Alibaba priced an HKD80 billion (approximately $10.3 billion) placement of 710 million newly issued ordinary shares on 23 August. The shares, equivalent to approximately 3.7% of Alibaba’s outstanding ordinary shares, were priced at HKD112.70 (approximately $14.50) each and offered to non-US investors through offshore transactions. The placement is expected to close on 26 August. Alibaba intends to use all net proceeds for full-stack AI capabilities and infrastructure.

The offering adds funding for Alibaba’s plan to invest at least RMB380 billion (approximately $53 billion) in AI and cloud infrastructure over three years. Capital expenditure increased 75% year on year to RMB67.7 billion (approximately $10 billion) in the June quarter, contributing to a RMB44.7 billion (approximately $6.6 billion) free-cash-flow outflow. The firm’s AI Cloud and Compute Services revenue rose 45% to $7.1 billion, while the segment’s adjusted EBITA increased 133% to $830 million.

3. SoftBank plans JPY1 trillion retail bond amid AI expansion

SoftBank Group announced on 24 August that it plans to issue JPY1 trillion (approximately $6.3 billion) of seven-year unsecured bonds, principally to individual investors. The bonds will be issued in JPY1 million (approximately $6,300) denominations. The indicative annual coupon is 4.3%–4.9%, with final pricing scheduled for 4 September. SoftBank said the proceeds would fund AI-related investments and repay existing bonds.

The issue comes as SoftBank finances investments across generative AI, infrastructure and robotics. The group secured a $40 billion unsecured bridge facility in March to fund a $30 billion follow-on investment in OpenAI and other corporate purposes. It is also preparing to complete its $5.375 billion acquisition of ABB’s robotics business, which SoftBank describes as part of its expansion into AI robotics. The planned issue exceeds SoftBank’s JPY600 billion (approximately $3.8 billion) retail bond issuance in 2025.

4. China proposes wider oversight of outbound investment

China’s National Development and Reform Commission published draft revised outbound-investment measures on 21 August for consultation until 20 September. The draft would replace the Enterprise Outbound Investment Administrative Measures introduced in 2017. It extends the covered investor population from enterprises and other organisations to individuals and adds reporting requirements covering significant projects and developments after an investment has been made.

The revision follows the State Council’s outbound-investment regulation, which took effect on 1 July, and places greater emphasis on geopolitical risk. The draft would require reporting on foreign measures involving technology or data transfers or asset disposals, as well as preliminary reporting for large projects affecting China’s diplomatic relations.

5. Bank Indonesia holds rates and extends FX hedging incentive

Bank Indonesia held its policy rate at 5.75% on 19 August, with its deposit and lending facility rates unchanged at 4.75% and 6.50%. It retained intervention through offshore non-deliverable forwards and domestic spot and non-deliverable forward transactions. The central bank also extended a 12.5% premium reduction for foreign-exchange swap hedging to foreign borrowing by banks and foreign direct investment. The incentive previously covered portfolio inflows.

The expanded incentive takes effect in the second week of September and applies to eligible foreign loans and direct investment entering Indonesia from 1 July. Swaps have a maximum tenor of 12 months and a maximum contract period of three years, with rollovers permitted within the remaining maturity. The measure complements Bank Indonesia’s July increase in the permitted foreign-funding ratio from 35% to 40% of bank capital, as bank lending grew 13.58% year on year.

6. Australia tightens superannuation distribution and governance

Australia announced reforms on 19 August after the collapse of the Shield Master Fund and First Guardian Master Fund exposed weaknesses in how retirement savings are marketed and invested. Almost 12,000 people had more than AUD1 billion (approximately $648 million) invested in the schemes, often after marketing firms referred them to advisers who recommended transferring their savings through investment platforms or self-managed super funds.

The government proposed banning unlicensed real-time marketing of superannuation products and restricting an anti-hawking exemption to existing adviser-client relationships. Authorities could stop suspicious transfers into self-managed funds, through which more than AUD100 million (approximately $64.8 million) entered the two schemes. Trustees could be required to compensate members for investment-governance failures, while managed investment schemes would have to notify regulators when they restrict withdrawals. Most measures require legislation or consultation.

7. MPS launches offers for Banco BPM and Banca Generali

Banca Monte dei Paschi di Siena launched separate all-share offers for Banco BPM and Banca Generali on 21 August. It offered 1.567 new MPS shares for each Banco BPM share, implying EUR16.729 (approximately $19.49) per share and no premium based on 19 August prices after adjusting for the proposed extraordinary distribution. Banca Generali shareholders would receive 6.958 MPS shares, implying EUR74.284 (approximately $86.54) per share and a 10% premium.

MPS shareholders will vote on the offers, associated capital increases and an extraordinary distribution of EUR4 billion (approximately $4.66 billion) on 29 October. The distribution would comprise EUR1 billion (approximately $1.17 billion) in cash and EUR3 billion (approximately $3.50 billion) in Generali shares and depends on at least one offer becoming effective. MPS is also seeking shareholder approval under Italy’s rules governing defensive measures because Intesa Sanpaolo has an outstanding offer for the bank. If both offers are fully accepted and the Mediobanca merger is completed, existing MPS shareholders would own approximately 50.1% of the combined group, Banco BPM shareholders 37.2% and Banca Generali shareholders 12.7%.

8. Santander completes $12.2 billion Webster acquisition

Santander completed its $12.2 billion acquisition of Webster Financial on 20 August after receiving approval from the Federal Reserve. Based on year-end 2025 figures, the combined US business has $327 billion in assets, $185 billion in loans and $172 billion in deposits, serving almost eight million customers.

Webster adds a commercial and relationship-deposit franchise, including healthcare financial services, to Santander’s existing US auto-finance, wealth and corporate-banking operations. Santander has set a target of approximately 18% US return on tangible equity by 2028. Webster is now a division of Santander Bank, although customers will initially continue using their existing systems, products and service channels.

9. Evergrande founder receives life sentence

The Shenzhen Intermediate People’s Court sentenced Evergrande founder Hui Ka Yan to life imprisonment on 20 August, deprived him of political rights for life and ordered the confiscation of his personal assets. The court found him guilty of illegally taking public deposits, fundraising fraud, illegally granting loans, fraudulent securities issuance, disclosure violations and corporate bribery. It also found him guilty of illegal use of funds and occupational embezzlement. Evergrande Group was fined RMB8.82 billion (approximately $1.23 billion) and Evergrande Real Estate RMB7 billion (approximately $976 million).

The court found that Evergrande inflated assets and concealed liabilities through sustained, large-scale financial falsification between 2016 and 2021. It also found that Evergrande Group and Hui obtained control of financial institutions through bribery and illegally obtained credit and insurance funds for the group. Another 56 defendants received prison terms ranging from one year and ten months to 18 years. The court stated that compensation for losses will take priority over fines and confiscation.

10. Malaysia and Singapore exports rise on electronics demand

Malaysia reported on 20 August that exports increased 38% year on year to MYR193.6 billion (approximately $45.9 billion) in July. Electrical and electronic product exports rose 51%, while domestic exports and re-exports increased 36.9% and 41.2%, respectively. Imports grew 36.4% to MYR171.1 billion (approximately $40.6 billion). Singapore’s non-oil domestic exports rose 24.2%, with electronics exports up 112.1%, while non-electronics exports declined 2.3%.

Malaysia recorded growth across manufactured, agricultural and mining exports, while its trade surplus reached MYR22.46 billion (approximately $5.33 billion), extending its run of monthly surpluses to 75 months. Singapore’s electronics growth was led by disk media products, personal computers and integrated circuits, supported by AI-related demand. Non-oil re-exports increased 51.3%.

What to watch

Bank of Thailand policy decision (26 August), ECB monetary-policy accounts and Bangko Sentral ng Pilipinas policy decision (27 August), Jackson Hole Economic Policy Symposium (27–29 August), G20 finance deputies meeting (29–30 August) and G20 finance ministers and central-bank governors meeting (31 August–1 September).

The Asian Banker Weekly Brief is a roundup of the biggest macroeconomic, industry and regulatory news affecting banking globally. Subscribe via LinkedIn.