China's financial regulators are investigating a month-end liquidity crunch that saw short-term money rates surge to as much as 50%, asking some institutions to explain why they borrowed at extremely high rates, Reuters reported. The overnight rate for pledged repo - a short-term financing business - hit a record high of 50% on Oct 31, as a month-end scramble for cash and a flood of government bond sales caused stress in money markets.

China Evergrande has proposed a new debt restructuring plan for offshore bondholders, offering to swap their debts into about a 30% equity stake in each of the developer's two Hong Kong-listed subsidiaries, Reuters reported. The property firm's offshore bondholders holding about $19 billion of debt are likely to take a major haircut on their investments if they agree to the new terms.

Asia's manufacturers faced worsening pressure in October with factory activity in China slipping back into decline, clouding recovery prospects for the region's major exporters already squeezed by weaker global demand and higher prices, Reuters reported. Purchasing managers' indexes (PMIs) for factory powerhouses China, Japan and South Korea showed activity shrinking while Vietnam and Malaysia also struggled with the broadening fallout from a Chinese slowdown.

The bankruptcy court in New Delhi has admitted the Serene Residency Group Housing Project at Sector ETA II after it defaulted on its dues of about ₹ 257 crore. The company is a subsidiary of listed real estate firm Ansal Properties and Infrastructure Ltd, the Economic Times of India reported. The New Delhi bench of the National Company Law Tribunal (NCLT) has admitted the insolvency resolution application filed by the Indian Bank against the company and also appointed Navneet Kumar Gupta as interim resolution professional (IRP) for the company.

Overnight borrowing costs for some Chinese financial institutions jumped to as high as 50% on Tuesday, as a month-end scramble for cash squeezed liquidity and stressed money markets, Reuters reported. In addition to seasonal factors, the cash shortage was caused by an upcoming flood of government bond issuance, and traders also pointed to market fears of default by cash-strapped institutions. The highest overnight rate for pledged repo - a short-term financing business - hit 50% on Tuesday, according to official interbank data, although the average rate remains modest at roughly 3.6%.

China’s economy suffered a setback as surveys showed factory orders shrank and construction activity slowed, reigniting growth concerns just as activity appeared to be stabilizing, the Wall Street Journal reported. The closely watched surveys show the world’s second-largest economy isn’t out of the woods as it contends with challenges including a slowdown in growth overseas and a drawn-out property bust at home.

China Evergrande Group, the world’s most indebted developer, won a final chance to set what could be the nation’s biggest ever restructuring back on track, as a Hong Kong court pushed back a winding-up hearing, Bloomberg News reported. Judge Linda Chan in Hong Kong’s High Court adjourned the proceedings to Dec. 4, the latest in a series of delays since they began last year. “This is really the last adjournment,” Chan said. Evergrande must have a concrete restructuring proposal by the next hearing, otherwise the court is “very likely” to issue a winding-up order, she said.

A sluggish Chinese economy is causing distress to pop up in unexpected corners of Europe’s junk credit markets, with companies pushed into debt restructurings due to events happening far away, Bloomberg News reported. Take Wittur Holding GmbH, a German maker of elevator components: Its revenue plunged after a real estate bubble burst in China, one of its main markets. As construction of new buildings all but stopped, demand dried up.

With China’s property bust threatening to sink the country’s economic recovery, Xi Jinping is looking for someone to blame, the Wall Street Journal reported. After putting the billionaire founder of Evergrande, a heavily indebted property firm, under investigation for possible crimes, Beijing is expanding its probes to include bankers and financial institutions that facilitated developers’ risky behavior. Among those under scrutiny: a former head of Bank of China, one of the country’s biggest lenders.