Foreign investors are zeroing in on health-care and consumer stocks and ditching some old favorites, as they sift through the spoils of a $2 trillion selloff in China’s equity market, Bloomberg News reported. Companies exposed to China’s growing middle class and resilient to external turbulence like the trade fight are popular picks for foreigners investing via trading links with Hong Kong. Liquor maker Kweichow Moutai Co., Han’s Laser Technology Industry Group Co. and Jiangsu Hengrui Medicine Co. are among those in demand, while Gree Electric Appliances Inc.

Asian stocks extended a global rally, with a weaker yen helping Japan’s Nikkei close up 0.7%. Benchmarks in Hong Kong, South Korea, Indonesia and Singapore also rose, The Wall Street Journal reported. However, indexes in mainland China were little changed, after large gains Monday helped temper a recent rout. China’s developers have enjoyed years of robust growth, expanding aggressively to take advantage of cheap debt and a housing boom.

Asian bond investors reduced positions in June to the most underweight levels ever for the regional asset class, based on survey data by Bank of America Merrill Lynch, stretching back to 2009. Investors see China’s liquidity tightening and domestic bond defaults as the top two risks for the Asian credit market, followed by fund outflows, Bloomberg News reported. They cut Asian bond holdings to 24 percent net underweight in June from negative 13 percent in March as they raised cash levels and reduced risks, the survey, which was conducted from June 25-29, showed.

China Huarong Asset Management Co., the state-owned bad-debt manager whose former chairman has been embroiled in a graft probe, plans to restructure its overseas operations in a bid to cut costs, people with knowledge of the matter said, Bloomberg News reported. The company is targeting reductions of more than 50 percent in staff-related costs at its businesses in Hong Kong and other markets outside China, according to two of the people. Options being discussed involve cutting jobs and pay, said one of the people, who asked to remain anonymous discussing confidential information.

Shanghai-listed energy and petrochemical group Wintime Energy defaulted on a bond payment on Thursday, putting $3.9bn in oustanding bonds at risk, the Financial Times reported. Chinese bond defaults have accelerated this year, leading to widening credit spreads in both the onshore renminbi and offshore US dollar bond markets.  Wintime missed payment on an Rmb1.5bn one-year commercial paper that matured on Thursday, according to Shanghai Clearing House. Wintime has the equivalent of $3.9bn in bonds outstanding, according to Thomson Reuters data.

China Ocean Industry, the parent group of Jiangxi Shipbuilding, has entered into a debt restructuring agreement with Zhejiang Ouhua Shipbuilding, Asia Shipping Media reported. Under the agreement, China Ocean Industry will transfer 40% equity shares in its fully owned subsidiary China Ocean Hong Kong to Zhejiang Ouhua Shipbuilding to offset outstanding debt of RMB200m ($30m) owed by Jiangxi Shipbuilding to Zhejiang Ouhua. China Ocean Industry believes the deal will bring new cooperation opportunities to revive business of Jiangxi Shipbuilding.

Lying just to the south of Shanghai, Zhejiang province is the historical centre of Chinese private enterprise.

Pakistan has asked China to keep lending it money to avert a foreign currency crisis, warning that Beijing’s planned $60bn investment in the south Asian country was at risk if it failed to do so, the Financial Times reported. Pakistan borrowed $4bn from China in the year ending June 2018, according to government officials, and wants to keep the money flowing to avoid having to ask the IMF for a bailout.

For HNA Group Co. leader Chen Feng, the sudden death of his No. 2 raises the pressure for the Chinese tycoon to step up his involvement in fixing the finances of a group saddled with more than $90 billion in debt, Bloomberg News reported. The late Wang Jian, the junior of HNA’s two chairmen, died while sightseeing in a French village this week at a time the group was undertaking an urgent restructuring that’s already involved more than $16 billion in asset sales this year.

Turkey’s Bereket Enerji group has put power plants on sale as part of plans to refinance and pay down its debts, joining other Turkish power companies that are renegotiating their foreign-currency loans with lenders, seven people with knowledge of the plan said, Bloomberg News reported.