As Beijing reins in its largesse and credit stresses rise in China amid a wave of defaults, investors should wonder where the ructions will appear next, Bloomberg News reported in a commentary. Going by the numbers, local government financing vehicles – with trillions of yuan outstanding – seem primed to come under pressure. Their debt is meant to help raise capital for infrastructure and other public projects. Issuance in the first seven months of the year totaled 2.5 trillion yuan ($381 billion), up 32% over the same period in 2019.

It has almost been a year since troubled Dewan Housing Finance Corp. Ltd (DHFL) was thrust into insolvency proceedings—the first financial firm to be under the code, Mint reported. The committee of creditors has held 11 meetings so far and a 12th was on at the time of writing this piece. The latest meeting comes in the wake of a surprise bid for DHFL. An Adani Group company now wants to buy DHFL lock, stock and barrel for an amount higher than the highest bid of ₹31,000 crore made by Oaktree Capital so far, according to a Mint report.

Shares in AirAsia fell as much as 8 per cent on Wednesday after the Malaysian budget carrier said it would review its investment in India, the strongest signal yet it is reassessing its south Asia business, the Financial Times reported. The statement on Tuesday night came hours after AirAsia’s Japanese unit filed for bankruptcy in the Tokyo District Court, citing “insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic”.

Tsinghua Unigroup, a major government-backed player in China’s technology race, has defaulted on a 1.3-billion-yuan ($197.96 million) bond, three sources said, as several high-profile delinquencies by state firms rattled the country’s bond market, Reuters reported. The default by Tsinghua Unigroup, a wholly-owned division of the prestigious Tsinghua University in Beijing, on Monday immediately triggered a credit rating downgrade that is expected to weaken the company’s financial health.

A new framework to resolve debt crises in developing countries, meant to ensure that Chinese and private creditors share the burden of providing relief, faces a key test after Zambia became the first African nation to default during the coronavirus pandemic, The Wall Street Journal reported. Finance ministers from the Group of 20 major economies said Nov.

German carmaker BMW said on Tuesday there was no indication that its deal to increase its stake in its joint venture with Brilliance China Automotive would be affected by debt issues at Brilliance's parent, Reuters reported. BMW said in 2018 that it would pay 3.6 billion euros ($4.2 billion) in 2022 for a further 25% stake in the venture with Brilliance - its main joint venture in China - adding to its existing 50% holding and giving it control of BMW Brilliance Automotive (BBA).

Beleaguered water treatment firm Hyflux has come under judicial management (JM) after a High Court ruling yesterday, following a marathon debt restructuring effort that has yet to put money on the table for creditors, The Straits Times reported. Mr Hamish Alexander Christie and Mr Patrick Bance of Borrelli Walsh, the restructuring firm advising the unsecured working group (UWG) of 19 banks that hold more than $931 million of Hyflux debt - were appointed the judicial managers and took over the firm's operations yesterday.

A series of unwelcome surprises in China’s huge corporate-bond market has knocked investors’ confidence in the local governments that stand behind many issuers, The Wall Street Journal reported. In one high-profile example, Yongcheng Coal & Electricity Holding Group Co. shocked investors last Tuesday by failing to repay a maturing short-term bond worth 1 billion yuan, or the equivalent of $151 million.

The Singapore High Court has granted leave for debt-ridden KrisEnergy to convene a meeting of its scheme creditors within three months from Nov 16, the Business Times reported. The mainboard-listed upstream oil and gas firm's debt moratorium has also been extended again, this time to Jan 16, 2021. It was first granted in September last year.

China’s central bank injected more than $120 billion yuan into the country’s banking system on Monday in a move to soothe rattled nerves after a series of debt shocks involving state-owned enterprises (SOEs) led to a bond selloff last week, Reuters reported.