India’s government has decided on a structural framework for a USD11 billion infrastructure debt fund aimed at revamping the country’s infrastructure. The fund will either be set up as a trust or a company. If it is established as a trust, the fund will function as a mutual fund and will issue shares to investors. If the fund is set up as a company, it will be a non-banking financial institution that issues bonds. Banks and foreign investors will be allowed to invest as sponsors of the infrastructure debt fund. Domestic and foreign institutional investors, insurance and pension funds will be invited to invest in the fund. India has targeted USD1 trillion in spending by 2017 to build roads, ports and airports.

China’s manufacturing activity slowed in June, according to preliminary data. The HSBC China Manufacturing Purchasing Managers Index (PMI) declined to an 11-month low of 50.1. PMI readings above 50 indicate expansion in manufacturing activity, readings below 50 indicate a contraction. The June number is down from a reading of 51.6 in May. China’s government is attempting to slow the country’s blistering pace of economic growth, but many market watchers fear the government will overcompensate with economic tightening measures, resulting in a “hard landing” for China’s economy. The final June PMI data will be released on July 1.

China’s Premier Wen Jiabao told state media that the government would rein in inflation this year. “There is concern as to whether China can rein in inflation and sustain its rapid development. My answer is an emphatic ‘yes,’” Wen told the Xinhua news agency. He added that the government’s “targeted policies” have helped control rising prices, even though inflation came in at 5.5 percent in May, significantly higher than the government’s official target of 4 percent. It was the highest inflation level in nearly three years.

South Korean policymakers will take steps to rein in the country’s growing household debt, government officials said. Speaking at the parliament’s economic policy forum, Financial Supervisory Service Governor Kwon Hyouk-se said the government would enact measures later this month to control the country’s USD744 billion worth of household debt. These would include monitoring loan-to-deposit ratios and loan growth. Smaller institutions will also see their loan-loss reserve ratios hiked. The government will also review banks’ asset growth each quarter, a move that is likely aimed at keeping banks from expanding too rapidly.