International News 28 January 2026
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China’s Industrial Profits Return to Growth in 2025 After Four-Year Slump
China’s industrial profits finally returned to growth in 2025, marking the first annual increase in four years as price wars eased and exports strengthened amid weak domestic consumption. Official data from the National Bureau of Statistics (NBS) showed that industrial profits rose 0.6% year-on-year in 2025, reversing a downtrend that began in 2021. Growth had been just 0.1% up to November, but profits surged 5.3% in December, rebounding sharply from a 13.1% contraction the previous month. The improvement was supported by government efforts to curb excessive competition—particularly in sectors such as automobiles and solar panels—after years of aggressive market-share strategies squeezed corporate margins. Export momentum also helped offset lingering producer-level deflation, with diversification away from the U.S. market softening the impact of tariffs imposed by President Donald Trump. The automotive sector, for instance, saw profits rise 0.6% in 2025, reversing an 8% decline a year earlier, driven by strong overseas demand. However, structural challenges remain. NBS statistician Yu Weining warned that external uncertainties are intensifying and that industrial transformation continues to pressure businesses. By ownership, state-owned industrial firms saw profits fall 3.9%, private firms’ profits were broadly flat, while foreign firms recorded a 4.2% increase. Looking ahead, Beijing aims to boost services consumption to absorb industrial output, tackle overcapacity, and reduce reliance on external demand.
https://internasional.kontan.co.id/news/laba-industri-china-naik-di-2025-pertama-dalam-empat-tahun
Saudi Aramco Raises US$4 Billion in Oversubscribed Four-Tranche Bond Sale
Saudi Aramco, the world’s largest oil company, has launched a four-tranche bond offering totaling US$4 billion, with maturities of three, five, 10, and 30 years. The company issued bonds of US$500 million (three years), US$1.5 billion (five years), US$1.25 billion (10 years), and US$750 million (30 years). According to Reuters citing IFR, investor demand exceeded US$21 billion, reflecting strong appetite and allowing Aramco to tighten pricing well below initial guidance. The three-year tranche was priced at 60 basis points (bps) above U.S. Treasuries, down from an initial 100 bps, while the five-year was set at 80 bps versus an indicative 115 bps. The 10-year and 30-year tranches were priced at 95 bps and 130 bps above Treasuries, respectively, compared with initial guidance of around 125 bps and 165 bps. Citi, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley acted as active bookrunners, with a broad group of global banks serving as passive underwriters. This marks Aramco’s latest return to debt markets after raising US$3 billion via sukuk in September and US$5 billion in bonds last May, following a three-year hiatus that ended with a US$6 billion bond sale in July 2024. As Saudi Arabia’s main revenue source, Aramco has cut costs and plans asset sales amid lower oil prices and rising debt. Its total dividends for 2025 are projected at about US$85.4 billion, roughly 30% lower than in 2024. The Saudi government directly owns nearly 81.5% of Aramco, while the Public Investment Fund (PIF) holds about 16%. Beyond bonds, Aramco has also raised funds through an US$11 billion sale-and-leaseback deal tied to Jafurah gas facilities and a 0.64% share sale in 2024 that generated US$12.35 billion.
Thailand’s Economy Seen Growing 2.0% in 2026 on Tourism and Domestic Demand
Thailand’s economy is forecast to grow 2.0% in 2026, in line with earlier projections, supported by a rebound in tourism and resilient domestic demand that are expected to offset a slowdown in exports, the finance ministry said. Exports, the country’s main growth driver, are now projected to rise 1% this year, an upgrade from a previous forecast of a 1.5% decline, although growth is set to slow sharply from 12.9% in 2025 due to a high base, weaker global trade, and risks from potential U.S. trade retaliation. The baht has strengthened about 1.1% so far this year after a 9% rise in 2025, threatening export and tourism competitiveness. The U.S. has imposed a 19% tariff on Thai imports, adding to external headwinds. Tourism is expected to be the main growth engine in 2026, with foreign arrivals projected at 35.5 million, up from around 33 million last year but still below the pre-pandemic peak of nearly 40 million in 2019. Private consumption is forecast to grow 2.5%, while private investment is seen rising 3.2% as state-promoted projects materialize. Government investment is projected to contract 1.7% due to political transition and budget delays, while government consumption is expected to grow 1.3%. Headline inflation is forecast at 0.3%, below the central bank’s 1–3% target range, prompting more frequent quarterly consultations with the central bank. For 2025, economic growth is estimated at 2.2%, following 2.5% growth in 2024, with risks stemming from global trade volatility and high household and small-business debt.