Global funds that invested in China Evergrande Group's bonds have come up with their own debt restructuring plan for the property developer and demanded that its chair repay liabilities with his own fortune, the Financial Times reported on Tuesday, according to Reuters. With more than $300 billion in liabilities, Evergrande, once China's top-selling developer, has been at the centre of the crisis and its debt restructuring plan is seen as a possible template for others.

China is set to step up scrutiny of companies seeking to sell offshore debt, as defaults worsen to record levels and concerns mount about the fallout from dollar strength, Bloomberg News reported. Borrowers including financial firms will be required to register, report and receive approval for issuance of offshore debt with tenors longer than one year from the National Development and Reform Commission, according to a draft for comments posted on the NDRC website and dated Aug. 26. The opinion consultation period is from that day to Sept. 26.

China's three biggest airlines posted on Tuesday a combined 28.4 billion yuan ($4.12 billion) second-quarter loss, wider than in the first quarter, due to major travel disruptions including a strict COVID-related lockdown in Shanghai, Reuters reported. The country's policy of localised lockdowns in response to case numbers that are small by global standards has forced carriers to frequently press the stop button on domestic travel, the main driver for revenue amid border policies that have all but grounded international travel.

Agricultural Bank of China Ltd., the nation’s third-largest bank by assets, said it’s facing 1.23 billion yuan ($178 million) in overdue loans, nearly double a previous estimate, from a mortgage boycott on unfinished projects that has swept the country, Bloomberg News reported. After reporting a small gain in earnings on Monday, the Beijing-based lender revealed that the overdue loans are linked to 1,112 projects. It had previously estimated 660 million yuan in loans were affected by the unprecedented protests.

Shares in China’s privately run banks have fallen sharply this year, as the country’s property slowdown starts to bite, the Wall Street Journal reported. The Shanghai-listed shares of China Merchants Bank and Ping An Bank Co.—two of China’s biggest, most prominent privately run lenders—have fallen by 32% and 25%, respectively, since the start of 2022, wiping $68 billion off their combined stock market value. The selloff is just the latest indication of the problems a slowdown in the property sector is having on the wider economy.

Authorities in central China on Monday announced the arrests of 234 people involved in a scam to bilk people out of their savings with the false promise of high interest rates on deposits in obscure rural banks, the Associated Press reported. The scandal drew national attention after investors seeking answers about where their money went were prevented from reaching the Henan provincial capital of Zhengzhou when the health status displayed on their mandatory COVID-19 cellphone apps was suddenly changed to red, preventing them from traveling.

There was much relief for investors in U.S.-listed Chinese firms after Beijing and Washington struck a long-pending audit deal, but legal experts and China watchers warn the two sides could still clash over how the accord is interpreted and implemented, Reuters reported. U.S. regulators have for more than a decade demanded access to audit papers of U.S.-listed Chinese companies, but Beijing has been reluctant to let U.S. regulators inspect its accounting firms, citing national security concerns.

China's central bank has stepped up pressure on lenders with new instructions to grow loans, six bankers with knowledge of the matter said, as the world's second-biggest economy faces an economic downturn and a plunge in borrowers' confidence, Reuters reported. The informal message, issued via phone calls over recent months to commercial, rural and even foreign banks, was to lend more money to productive businesses and put less of it in financial investments, the banking sources said.

China's banking and insurance regulator has agreed in principal to allow two rural banks in Liaoning Province to enter bankruptcy proceedings, according to an official statement released on Friday, Reuters reported. The two banks are Liaoyang Rural Commercial Bank Co., Ltd and Liaoning Taizihe Village Bank Co., Ltd, the China Banking and Insurance Regulatory Commission said. Read more.

China's unemployment insurance payouts hit a record high in June, adding to signs of a struggling labour market as the economy has been badly hit by COVID-19 outbreaks and a property crisis, Reuters reported. Payments by China's unemployment insurance fund jumped 256.6% in June from a year earlier to 37.19 billion yuan ($5.42 billion), according to Reuters' calculations based on data from the Ministry of Human Resources and Social Security. That was the highest since the data series began in January 2013.