Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The mining conglomerate once known as ENRC has sunk to its biggest annual loss since delisting from the London Stock Exchange over a decade ago, as borrowing costs and foreign exchange fluctuations weighed on its finances.
Privately held Eurasian Resources Group, which has mines in Kazakhstan, Brazil and the Democratic Republic of Congo, reported a pre-tax loss of $1.2bn last year, according to accounts filed in Luxembourg this month. That compared with a loss of $44mn in 2023.
The results come amid a power struggle for the former FTSE 100 company, which once had a market value of £13bn and was taken private in 2013. Shukhrat Ibragimov, the son of one of the Kazakh oligarchs who founded the mining group, is seeking to buy out his late father’s partners, in a deal that would give him a majority stake, the Financial Times reported in May.
Ibragimov, 39, took over as chief executive in October and has pledged to implement a new strategy that seeks to capitalise on rising global demand for many of the metals ERG produces, such as copper and aluminium.
The annual loss was largely driven by financing costs that reached $1.2bn, almost double the previous year, as foreign exchange losses grew to almost $600mn, from $88mn. Another $568mn was spent on servicing debts and changing the terms of some of its borrowings, up $135mn on the year before.
In a statement to Financial Times, ERG said the “paper loss” had been incurred in part as a result of the depreciation of the Kazakhstan Tenge, which fell by 15 per cent against the dollar last year. While group revenues are reported in dollars, the “functional currency” for its Kazakh assets is the Tenge.
ERG added that its underlying earnings before interest, tax, depreciation and amortisation rose by 22 per cent to $1.9bn last year, as production of ferroalloys, iron ore and alumina had all increased.
The Luxembourg-registered conglomerate receives a large part of its financing from Russian banks VTB and Sberbank, which were sanctioned by the EU and the US following Russia’s full-scale invasion of Ukraine in February 2022.
The company had an outstanding debt of $3bn with VTB as of 2023. In its 2024 accounts ERG said it had restructured its credit facility with the bank in order to proceed with payments under “all applicable laws and regulations,” swapping about $2bn of dollar-denominated debt owed to VTB into Chinese Yuan.
The year before, ERG completed a similar restructuring of its credit facility with Sberbank, according to the accounts.
ERG also revealed in its accounts that it had paid a $366mn dividend earlier this year to the government of Kazakhstan, which owns 40 per cent of the company.
The dividend had been declared in previous years but payment was blocked by “legal restrictions” in Luxembourg, which had since been lifted, it said, without providing further details.
A delegation of the Rice Exporters Association of Pakistan (REAP), led by Senior Vice Chairman Jawed Jillani, met with State Bank of Pakistan (SBP) Governor Jameel Ahmad and his team at the central bank.
Jawed Jillani informed the SBP governor about the challenges being faced by rice exporters. He requested him to waive the penalties imposed in the wake of late realisation of export proceeds, which was mainly due to the extra delay in transit time and was beyond the control of exporters. In response, the SBP governor issued instructions to remove the penalties.
The delegation complained about the unavailability of Export Refinance Facility (ERF) from various banks and the additional foreign exchange rates charged by shipping companies, which were Rs10-12 higher than the inter-bank rates. It also requested steps to facilitate the repatriation of long pending amount of rice exporters in Lebanon.
Gold prices in Pakistan fell on Tuesday, mirroring losses in the international market, where the yellow metal edged lower as traders assessed tariff developments and awaited key economic data. A major US inflation report kept expectations for interest rate cuts intact, limiting the downside.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola settled at Rs358,300 after declining by Rs500. The rate for 10 grams stood at Rs307,184, down Rs429. On Monday, gold had dropped sharply by Rs3,600 per tola, closing at Rs358,800.
Interactive Commodities Director Adnan Agar said the market remained under pressure due to a mix of geopolitical and economic factors. “Gold is exhibiting a downward trend as traders digest data that appears largely neutral for the precious metal,” he noted.
Agar pointed to speculation ahead of a planned summit between the United States and Russia in Alaska on August 15 to discuss the war in Ukraine. “If the meeting leads to a peaceful resolution, it will typically reduce safe-haven demand for gold,” he explained.
Over the past three to four months, gold has traded within a narrow range. Analysts now expect this range to be tested, with two developments likely to be decisive: the outcome of US-Russia talks and the direction of US monetary policy.
While the Federal Reserve has kept interest rates unchanged, markets are watching for a possible cut, with the next policy meeting due in September. “Both the summit and upcoming Fed decisions will be critical for shaping gold’s next move,” Agar added.
Spot gold was down 0.3% at $3,333.68 an ounce at 10:31 am EDT (1431 GMT), according to Reuters. The US Consumer Price Index (CPI) rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast a rise of 0.2% in July and an increase of 2.8% year-on-year.
Meanwhile, the Pakistani rupee extended its mild gains against the US dollar, appreciating by 0.01% in the inter-bank market. The local currency ended the day at 282.42, up three paisa from Monday’s close at 282.45.
Globally, the US dollar traded flat ahead of a closely watched consumer inflation report later in the day, which could influence expectations for potential interest rate cuts by the Federal Reserve.
The Australian dollar also held steady in the hours leading up to the Reserve Bank of Australia’s policy decision. Meanwhile, the US dollar index, which tracks the greenback’s performance against six major currencies, including the euro and yen, was unchanged at 98.497, after gaining 0.5% over the previous two sessions.
As shown in Table 1, the DLG values measured by EPID (DLGEPID) were generally lower than those measured by the ionization chamber (DLGion). At the isocenter, DLGEPID was 0.95 mm, which is 0.27 mm lower than DLGion. At positions ±3 cm∥ and ±5 cm∥, DLGEPID consistently measured around 0.95 mm, while DLGion was approximately 1.30 mm and 1.40 mm, respectively. For the perpendicular positions at ±3 cm⊥ and ±5 cm⊥, DLGion values were 1.08 mm, 1.20 mm, and 1.21 mm for both, whereas the DLGEPID values were 0.65 mm, 0.58 mm and 0.71 mm, 0.61 mm.
DLGion values at the −3 cm⊥ and –5 cm⊥ remained consistent, with a maximum difference of 0.62 mm at the –3 cm⊥ position and a minimum difference of 0.27 mm at the isocenter. As the distance from the detection point to isocenter increased, the difference also increased. DLGEPID at the isocenter and at ±3 cm∥, ±5 cm∥remained nearly constant, while DLGion values varied. The points at ±3 cm∥ and ±5 cm∥ were consistently higher than at the isocenter. Notably, both DLGEPID and DLGion values at these perpendicular detection points were lower than those in the parallel orientation, except at the +3 cm⊥ position.
Sliding window MLC gap plan
The original plan and the 2D DLG-based adjusted plan for the sliding window MLC gap plan were measured using the EPID device. A comparison between the measured results and the TPS calculated dose was made. Table 2 shows the GPR results with absolute dose criteria of 3%/2 mm and 2%/2 mm, a dose threshold of 10%. For the criterion of 3%/2 mm, the fields with small gaps (2 mm, 4 mm, 6 mm, 10 mm), GPR of Planadj improved by 12.2%, 17.6%, 25.4%, and 58.2%, respectively, compared to Planorg; the larger dynamic gap fields (14 mm, 16 mm, 20 mm), the GPR improvements were even more substantial, with increases of 83.6%, 84.3% and 82%, respectively. As to the criterion of 2%/2 mm, GPR improvements were consistently smaller than those with the criterion of 3%/2 mm across all gap fields, though the same improvement trend was maintained. For the fields with small gap (2 mm, 4 mm, 6 mm, 10 mm), GPR improvements were 8.5%, 11.6%, 17.6%, 33.2% respectively. In contrast, larger fields (14 mm, 16 mm, 20 mm) showed larger improvements of 59.5%, 70.3%, 78.9%.
Table 2 Gamma pass rate (3%/2 mm and 2%2 mm) improvement between the original and 2D DLG-adjusted plans for different gap fields.
As the gap increased from 2 to 10 mm, the GPR improvement accordingly increased for both criterion of 3%/2 mm and 2%/2 mm. Beyond a gap of 10 mm, the GPR improvement stabilized with minimal fluctuations for 3%/2 mm and stay increased for 2%/2 mm. (a) For the criterion of 3%/2 mm, both the GPRs for the planorg and planadj were notably low for small gap fields, indicating a significant difference between the measured and predicted planar dose. In contrast, for large gap fields, GPR for the planorg remained low, whereas the planadj showed a significant improvement, with values exceeding 90%. (b) For the criterion of 2%/2 mm, the GPRs of the original plans remained the same as those of 3%/2 mm for fields with gap ranges of 2 mm to 10 mm. However, the GPRs of the adjusted plans were lower for all gap fields. Notably, the GPR improvement values of 2%/2 mm continued to increase across all fields, including the larger gap fields, which differs from the trend observed under 3%/2 mm criterion. As a result, the 2D DLG correction had a substantial impact on GPR for the constant gap dynamic MLC plan.
Patient plan
The DLGTuner exhibited excellent performance in the plan adjustment process. The time of generating the adjusted plan was within 10 to 15 seconds, which depends on the complexity of original plans. Ten consecutive generating processes were performed without any instability for DLGTuner, with complete consistency observed across all generated plans. Besides, DLGTuner demonstrated strong effectiveness in clinic practice. The original plan exported from TPS was modified using DLGTuner, and the resulting plan could be delivered directly on the LINAC after specific patient quality assurance. Therefore, these results confirm the DLGTuner’s reliability and suggest strong potential for clinical implementation.
Both planorg and planadj were measured with EPID. Measured results were compared with the calculated dose of TPS. Absolute dose criteria of 3%/2 mm and 2%/2 mm, global dose normalization, and a dose threshold of 10% were used to calculate the GPR.
Figures. 4 and 5 were the comparisons of distribution and profile between the delivered fluence measured by EPID and patient plans calculated by TPS for both planorg and planadj. The two figures display a multiple target patient with 14 targets and 5.4cc volumes that passed 3%/2 mm criteria at 67.1% for planorg and 99% for planadj. As shown in the figures, the measured dose was higher than the calculated dose for both planorg and planadj in both X and Y directions, especially in the tumor region. For both planorg and planadj, measured dose was aligned with calculated in the low dose region. Compared with the planorg, the dose differences between the measured and calculated were decreased, and the alignment was increased, especially in the Y direction for the planadj. For both planorg and planadj, in the Y direction, the dose fluctuated due to the MLC inter and intra dose variation. Fig. 6a displays the 3%/2 mm GPR for all clinical multi-target VMAT plan fields in relation to the level of modulation, indicated by the MCS. The figure shows that GPR improvements were consistently positive, with GPR for the planadj higher than that for planorg across all cases. The most significant improvements in GPR occurred in highly modulated plans (with low MCS score), with the largest improvement exceeding 35% and the smallest around 5%. This suggests that the 2D DLG correction enhances deliverability and accuracy, especially for highly modulated plans, resulting in better alignment between calculated and delivered doses.
Fig. 4
The comparison between the measured and calculated dose for Planorg. (a) dose distribution calculated by TPS. (b) dose distribution measured by EPID. (c) dose profile comparison between measured and calculated in X direction. (d) dose profile comparison between measured and calculated in Y direction.
Fig. 5
The comparison between the measured and calculated dose for Plannew. (a) dose distribution calculated by TPS. (b) dose distribution measured by EPID. (c) dose profile comparison between measured and calculated in X direction. (d) dose profile comparison between measured and calculated in Y direction.
Fig. 6
The relationship between the GPR improvements and (a) MCS, (b) target number, (c) number of MUs and (d) target volumes for the multiple targets brain metastasis.
Fig. 6b illustrates the relationship between GPR improvement and the number of targets. It is evident that when the target number increases, the GPR improvement becomes more pronounced. For cases with 2 or 4 targets, GPR improvements varied significantly, likely due to additional influencing factors, which is discussed in the following section.
The number of MUs shows a slight correlation with GPR improvement. Plans with a higher number of MUs were prone to show greater GPR improvement (Fig. 6c). However, no significant relationship was observed between GPR improvement and target volume (Fig. 6d).
As shown in Table 3, the mean GPRs of the original plans were 82.8% and 78.7% for multiple targets, 97.2% and 96.5% for single target under the 3%/2 mm and 2%/2 mm criterion, respectively. After applying the 2D DLG correction, the GPR for both multiple and single targets improved to nearly 100% under the 3%/2 mm criterion. However, under the stricter 2%/2 mm criterion, the GPRs were slightly lower for both multiple and single targets. The average GPR improvements for single target plans were 2.59% and 3.07% (standard deviation: 4.29% and 3.21%), while for multi-target plans, the average GPR improvements were 16.52% and 19.77% (standard deviation: 9.37% and 9.71%), under the 3%/2 mm and 2%/2 mm criteria, respectively. Notably, the GPR improvements under the 2%/2 mm criterion were greater than that under the 3%/2 mm criterion for both single and multiple targets, suggesting that the 2D DLG correction is more impactful under stricter evaluation criterion. Furthermore, the GPR improvements for multi-target plans were significantly larger than that for single-target plans for both 3%/2 mm and 2%/2 mm, indicating that the 2D DLG correction has a more substantial impact on dose delivery for patients with multiple targets compared to those with a single target.
Table 3 Gamma pass rate (3%/2 mm & 2%2 mm) improvement for single and multiple targets plans.
Brunei’s economy saw broad-based growth in 2024, its strongest expansion in decades. The economy grew by 4.1 percent in 2024, driven by strong rebounds in both upstream and downstream oil and gas (O&G) sectors. Growth is projected to ease to a more sustainable pace of 2.0 percent in 2025-2026, as upstream and downstream O&G production stabilizes.
Headline inflation has been declining since 2023 and turned negative last year, reflecting lower prices in transport, communication, clothing, and footwear. It is expected to stay subdued, averaging below 1 percent in 2025–26, driven by lower food and energy costs.
For Kalpesh Patel, Diwali, the festival of lights celebrated across India, might well mark lights out for his eight-year-old diamond cutting and polishing unit.
The 35-year-old employs about 40 workers who transform rough diamonds into perfectly polished gems for exports at the small factory in Surat, a city located in the western Indian state of Gujarat.
His business has survived multiple speed bumps in recent years. But United States President Donald Trump’s mammoth 50 percent tariffs on imports from India might be the final nail in the coffin for his unit, part of an already struggling natural diamond industry, he said.
“We still have some orders for Diwali and will try to complete them,” he told Al Jazeera.
Diwali, arguably India’s single biggest festival, scheduled for late October this year, usually sees domestic sales of most goods soar. “But we might have to shut the business even before the festival, as exporters might cancel the orders due to high tariffs in the US,” Patesh said.
“It is becoming increasingly difficult to pay the salaries and maintain other expenses with falling orders.”
He is among the 20,000-odd small and medium traders in Surat, known as the “Diamond City of India”, which together cut and polish 14 out of every 15 natural diamonds produced globally.
The US is their single largest export market. According to the Gem and Jewellery Export Promotion Council (GJEPC), India’s apex body for the industry, the country exported cut and polished gems worth $4.8bn to the US in the 2024-25 financial year, which ended in March. That is more than one-third of India’s total exports of cut and polished diamonds, at $13.2bn over the same period.
Dimpal Shah, a Kolkata-based diamond exporter, told Al Jazeera that orders have already started getting cancelled. “Buyers in the US are refusing to offload the shipped products, citing high tariffs. This is the worst phase of my two-decade-old career in diamonds.”
Kalpesh Patel, who runs a diamond cutting and polishing business in Surat, Gujarat, fears that he may not be able to continue his business for long, because of US tariffs on Indian imports [Photo courtesy of Kalpesh Patel]
US imposes penalty
A 25 percent reciprocal tariff on all Indian goods, which Trump announced on April 2, came into effect on August 7, after talks between the two countries failed to yield a trade deal by then. Negotiations are continuing.
Meanwhile, on August 6, Trump announced an additional 25 percent tariff, taking the total tariff rate to 50 percent. He termed the additional tariff that would come into effect from August 27 as a penalty for India’s continued buying of Russian oil, as the US president tries to push Moscow into accepting a ceasefire in Ukraine.
For the gems industry, which already faced a pre-existing 2.1 percent tariff, the effective tariff now amounts to 52.1 percent.
Ajay Srivastava, the founder of Global Research Trade Initiative (GTRI), a trade research group, termed the Trump government’s additional hike as an act of “hypocrisy”, citing how the US itself continues to trade with Russia, and how China – Russia’s biggest oil buyer – faces no similar penalty.
“Trump is targeting India out of frustration as it refused to toe the US line on the Russia-Ukraine conflict, and for its refusal to open its agriculture and dairy sector,” he added, referring to broader ongoing trade talks and differences over US demands for greater access to critical Indian economic sectors.
Yet, whatever the reasons for Trump’s tariffs, they are hurting a diamond industry already bleeding from multiple hits.
India supplies almost all of the world’s cut and polished diamonds, produced in small units across the state of Gujarat [Photo courtesy Ramesh Zilriya, president of the state’s Diamond Workers Association]
Diamond sector badly hit
More than 2 million people are employed in diamond polishing and cutting units in Surat, Ahmedabad and Rajkot cities in Gujarat — and many have already suffered salary cuts in recent years, first because of the COVID-19 pandemic, and then Russia’s full-scale invasion of Ukraine.
“The pandemic led to economic slowdown affecting the international markets in Hong Kong and China,” Ramesh Zilriya, the president of Gujarat’s Diamond Workers Union, told Al Jazeera. The “Western ban on rough diamond imports from Russia due to the Russia-Ukraine war and the G7 ban on Russia also affected our business”, he added.
Russia has historically been a major source of raw diamonds.
Zilriya claimed that 80 diamond workers have died by suicide over the past two years because of this economic crisis.
“The situation in the international market led to the wages of the workers getting halved to approximately 15,000-17,000 rupees ($194) per month, which made survival difficult in the face of rising inflation,” he said.
Once the Trump tariffs fully kick in, Zilriya fears that up to 200,000 people in Gujarat may lose their livelihoods.
Already, more than 120,000 former diamond sector workers have applied for benefits. A 13,500-rupee ($154) allowance per child, to support their families, was promised in May by the state government to those who have lost jobs due to the tumult in the sector in recent years.
But the tariffs, pandemic and war are not alone to blame for the crisis: Lab-grown diamonds are also slowly eating into the market of their natural counterparts.
“Unlike natural [diamonds], the lab-grown diamonds are not mined but manufactured in specialised laboratories and priced at just 10 percent of the natural ones. It is difficult even for a seasoned jeweller to identify the natural and lab-grown with a naked eye. The taste of consumers is now shifting to lab-grown [diamonds], as they are cheap,” said Salim Daginawala, the president of the Surat Jewellers Association.
A worker checks the polishing of a lab-grown diamond in Surat, India, Monday, February 5, 2024 [Ajit Solanki/AP Photo]
Decline in exports
In the 2024-25 financial year, India imported rough diamonds worth $10.8bn, marking a 24.27 percent decline from the $14bn imported in 2023-24, as per the statistics by the GJEPC.
The exports of cut and polished natural diamonds similarly witnessed a 16.75 percent decline, with exports declining to $13.2bn in 2024-25 as compared with $16bn in the preceding year.
“This move [the tariffs] would have far-reaching repercussions on the Indian economy that might disrupt critical supply chains, stalling exports and threatening thousands of livelihoods. We hope to get a favourable reduction in tariffs; otherwise, it would be difficult to survive,” said Kirit Bhansali, the chairman of the GJEPC.
The tariffs could also hurt US jewellers, warned Rajesh Rokde, the chairman of the All India Gems and Jewellery Domestic Council (GJC), a national trade federation for the industry.
“The US has around 70,000 jewellers who would also face a crisis if the jewellery becomes expensive,” Rokde added.
A salesperson shows a diamond ring to a prospective buyer at a jewellery shop in Ahmedabad, India, on April 14, 2025 [Ajit Solanki/AP Photo]
A domestic solution?
Traders say that the need of the hour is to increase domestic demand for diamonds and diversify to new markets.
A stronger domestic market “would not only contribute to the local economy, but would also create jobs for several thousands of people”, said Radha Krishna Agrawal, the director of Narayan das Saraf Jewellers in Varanasi city, in the northern state of Uttar Pradesh.
The tariffs, he said, could prove a “blessing in disguise” if they end up reducing the dependence of India’s gems industry “on other countries”.
Bhansali said that the domestic gems and jewellery market was growing, and expected to reach $130bn in the next two years, up from $85bn at the moment. The industry is also looking for new markets, including Latin America and the Middle East.
Gold already offers an example of a strong domestic market, cushioning the impact of hits on exports, said Amit Korat, the president of the Surat Jewellery Manufacturers Association.
But for now, the diamond sector in India has no such shield. It needs to be saved, urgently, said Patel, the Surat business owner on the cusp of shutting down his polishing and cutting unit.
Without help, he said, “the business will lose its shine forever”.
Hong Kong’s Court of First Instance (Recorder William Wong SC) considered an anti-suit injunction application by Hyalroute Communication Group Limited (“Hyalroute”) to restrain a creditor, Industrial and Commercial Bank of China (Asia) Limited (“ICBC Asia”) from presenting a winding-up petition in the Cayman Islands in favour of arbitration in Hong Kong on the ground that the matter concerns disputes arising out of or in connection with a Term Facility Agreement which contains an arbitration clause for such disputes.
As the Court observed, these proceedings appear to be the first case where the Hong Kong Court has to consider the circumstances in which it should restrain winding-up proceedings in a similar common law jurisdiction which may have adopted a different approach on how to deal with winding-up proceedings in favour of arbitration.
The Court held that commencing Cayman winding-up proceedings would not be in breach of the arbitration clause as such proceedings would not have the effect of finally resolving the dispute within the meaning of the arbitration clause, and therefore the anti-suit injunction application was dismissed.
Background
In July 2018, two subsidiaries of Hyalroute entered into a Term Facility Agreement (“TFA”) as borrowers, with ICBC Asia as lender and Hyalroute as guarantor.
In 2021, a military coup took place in Myanmar, leading to damage to the fibre optic infrastructure of one the borrowers, and severe currency controls requiring such borrower to hold all funds in local currency and seek government approval to convert them into US dollars and/or obtain special permission to repay foreign-incorporated lenders. These made it impossible for the borrowers to comply with the payment schedule under the TFA.
In recognition of the political and commercial risks of investing in Myanmar, in June 2018 (before the TFA was entered into), ICBA Asia entered into an insurance contract with the Multilateral Investment Guarantee Agency (“MIGA Insurance Contract”) as the named beneficiary with the premiums ultimately borne by Hyalroute and the borrowers. The MIGA Insurance Contract provided coverage for various specified risks including war and civil disturbance and restriction on transfer of currency.
The TFA provided that if Hyalroute made an application to ICBC Asia in relation to a covered risk, its obligations as a guarantor would be suspended for any default caused by the relevant covered risk. However, any suspension would cease upon (i) ICBC Asia’s rejection of the Covered Risk Application, or (ii) MIGA’s determination that it was not liable to compensate ICBC Asia.
In February 2021, Hyalroute made a Covered Risk Application to ICBC Asia. ICBA Asia proceeded to make several claims under the MIGA Insurance Contract and Hyalroute contended that its obligations as guarantor under the TFA would be suspended.
However, on 22 and 27 November 2024, ICBC Asia served a Statutory Demand on Hyalroute and its registered agent demanding a sum of US$95,506,631.05, which comprised of the debts owed under the TFA and an interest rate swap arrangement. In response, Hyalroute applied for an anti-suit injunction to restrain ICBC Asia from presenting any winding-up petition against it in the Cayman Islands.
Court’s decision and reasoning
Hyalroute’s application for an anti-suit injunction was dismissed by the Court.
As the Court observed at the beginning of its Decision, the application arose against the context of the divergence between the Hong Kong Court of Final Appeal’s judgment in Re Guy Lam and the Privy Council’s judgment in Sian Participation, namely while under Hong Kong law winding-up proceedings will be stayed in favour of arbitration unless there is abuse, English law now requires the debtor to show there is a bona fide dispute on substantial grounds to justify the creditor going through arbitration.
The arbitration in this case provides:
“Any dispute, controversy or claim arising in any way out of or in connection with this Agreement (including (i) any issue regarding contractual, pre-contractual or non-contractual rights, obligations or liabilities and (ii) any issues as to the existence, validity, breach or termination of this Agreement (a “Dispute”) shall be referred to and finally resolved by binding arbitration administered by the Hong Kong International Arbitration Centre (“HKIAC”)” (emphasis added) (the “Arbitration Clause”)
As Hyalroute seeks a contractual anti-suit injunction by invoking the Arbitration Clause, Recorder William Wong SC considered that the starting point is whether a pursuit of foreign proceedings would be in breach of the arbitration agreement such that the respondent would be liable to be restrained by an anti-suit injunction. In relation to this, Hyalroute has to show a “high probability of success” that ICBC Asia’s pursuit of the anticipated Cayman winding-up proceedings breaches the Arbitration Clause.
Obligations under the Arbitration Clause and whether there is a breach
The Recorder considered that there are two obligations under the Arbitration Clause: (i) a positive obligation that disputes within the scope of the clause be finally resolved by arbitration, and (ii) a negative obligation that precludes the parties from having disputes finally resolved in a non-contractual forum, and properly construed, if a party commences legal proceedings that do not have the effect of finally resolving the disputes, then the negative obligation under the Arbitration Clause is not infringed and there would be no breach.
The Recorder agreed with ICBC Asia and held that the Cayman proceedings would only have the effect of “finally resolving the dispute” if the rulings or findings of the Cayman Court constitute res judicata and are capable of giving rise to an estoppel over the dispute. Whilst the Arbitration Clause is governed by Hong Kong law, the answer to this question depends on what Cayman law says about the Cayman winding-up proceedings.
The Recorder considered a number of authorities and accepted the Privy Council’s judgment in Sian Participation that as a matter of BVI law and English law, a creditor’s winding-up petition does not resolve or determine anything about the petition debt nor the petitioner’s claim to be owed money, such as the existence or amount of the debt, which is not an issue for resolution in those proceedings. The Recorder also considered that under Cayman law, a consistent line of authorities holds that even where the petition debt is disputed, the Court would determine only the threshold question of the genuineness of the dispute before deciding whether to grant, dismiss, or stay the winding-up petition, without resolving the substantive dispute or carrying out a summary judgment type analysis.
Therefore, the Recorder was of the view that upon a proper construction of the Arbitration Clause under Hong Kong law, winding-up proceedings in the Cayman Islands would not have the effect of finally resolving the dispute within the meaning of the Arbitration Clause, and bringing winding-up proceedings in the Cayman Islands would not amount to a breach of ICBC Asia’s negative obligation of not having the dispute finally resolved in a non-contractual forum.
Other reasons not to grant the injunction
While the Court considered that the above ground alone would warrant a dismissal of Hyalroute’s application, the Recorder also considered certain other grounds. He noted that the Court of Final Appeal in Re Guy Lam made clear that even if a dispute resolution clause applies to the insolvency proceedings before the Court, there is no automatic stay or dismissal, and the Court continues to take into account a range of considerations, even though a strong cause is needed to depart from such a clause. Notably, the merits of the defence may be so bad that they border on frivolous or amount to an abuse of process.
The Recorder considered that in this specific context, anti-suit injunctions and the Court’s own approach to staying insolvency proceedings should be treated alike. On the facts of the present case, he was of the view that Hyalroute’s defence was hopeless and frivolous, and it would be abusive for Hyalroute to rely on such a defence to prevent ICBC Asia from invoking the Cayman Court’s winding-up jurisdiction.
Observations
As mentioned above, Hong Kong winding-up proceedings are generally stayed in favour of arbitration unless there is evidence of abuse (Re Guy Lam) and this differs from the position under the English law as outlined in Sian Participation. The Hong Kong Court has also been generally “pro-arbitration”, giving effect to the parties’ pre-existing agreement to refer disputes to arbitration.
This decision has arguably taken a different route compared with the principles laid down in Re Guy Lam in that the Court, in this instance, takes a more “pro-creditor” approach. The result of this decision is perhaps understandable as Hyalroute would likely face a higher hurdle to obtain an Order from the Cayman Court for a stay of winding-up proceedings, having regard to the principles laid down in Sian Participation.
It remains to be seen whether the Hong Kong Court of Appeal (or even the Court of Final Appeal) will have the opportunity to further consider the issue.
In the meantime, litigants will need to bear in mind that upon a proper construction of the Arbitration Clause under Hong Kong law, winding-up proceedings in the Cayman Islands (and the BVI) would not have the effect of finally resolving the dispute within the meaning of the Arbitration Clause, and the Hong Kong Court will not restrain such proceedings.
This decision also serves as a reminder to parties that when drafting arbitration clauses, one may need to consider whether such a clause is drafted in sufficiently broad terms to prevent winding-up petitions (or similar applications) to be presented in an applicable offshore jurisdiction.
Commonwealth Bank has posted a record cash profit while announcing it will cut off lending to coal companies without net zero emissions plans.
Australia’s biggest bank recorded $10.25bn in annual cash profits for the year to June – a 4% lift on the previous year – and delivered a bumper $2.60 payout per share to shareholders.
CBA announced the results in its 2025 annual report on Wednesday alongside its updated environment and social policies, where it revealed it would impose further climate requirements on coalmining clients.
Thermal coalminers will not be permitted to borrow from the bank unless they are aiming to reach net zero emissions by 2050, with CBA imposing further decarbonisation and transparency requirements.
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The industry had access to about $660m in lending facilities with CBA in 2023 and 2024, the bank said. About $1.2bn of CBA finance was exposed to the thermal coal industry at the end of June.
CBA has imposed energy transition plan requirements on oil and gas companies and producers of the other main black coal product, metallurgical coal, since 2023.
Heightened requirements for lending would make it much harder for coal companies to borrow from the bank, according to Morgan Pickett, an analyst at climate advocacy group Market Forces.
“Australia’s biggest bank has officially ended any new finance for coal, whether for power or making steel, unless it’s proven to be compatible with a safe and livable climate,” Pickett said.
“It’s another nail in the coffin for coal.”
Tighter restrictions on coal lending came after Australian households took out an additional $34bn in home loans, up 7% from June 2024 to June 2025. Personal loans also picked up by $400m and business lending rose $16bn over the year.
The share of customers behind on home loan payments by 90 days or more rose to 0.7% over the first half of 2025, but CBA said that had now stopped rising.
Easing pressure on mortgage holders helped the bank save $76m, with impaired or unpaid loans costing CBA $726m in the year to June, down from the previous year’s $802m.
More customers are ahead on their minimum monthly loan repayments, with the share rising to 85% in June compared with just under 80% the previous year.
“Pleasingly, many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation and tax cuts,” CBA’s chief executive, Matt Comyn, said.
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Households deposited an additional $34bn in CBA accounts over the year to June, with savings deposits up 10% over the year and transaction account deposits, which do not receive interest, up 11%.
The gap between the interest CBA pays deposit holders and the interest it receives from borrowers widened to a net interest margin of 2.08%, supporting the record profits.
However, household and business customers saw the gap between loans and deposits narrow over the year, by 0.03 and 0.04 percentage points respectively, which the report attributed to increased competition with other banks to offer better mortgage and savings interest rates.
Alan Docherty, CBA’s chief financial officer, said nearly 90% of savers with conditional rate account were getting the full interest rate.
The bank delivered shareholders a dividend payout of $2.60 per share, to a total of $4.85 over the last 12 months, up from the $4.65 it paid in 2024, which will be paid to more than 800,000 direct shareholders.
Investors sold out of the bank after results were published, sending the price falling from nearly $178 to $169, which if sustained could be the stock’s biggest one-day fall since early 2023.
The value of CBA shares had risen greatly over the year to August, from $134 a year ago to a peak of $191 in June. Analysts have persistently said it is overvalued, UBS earlier in August saying the stock’s underlying value was closer to $120.
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