Shares of embattled developer plunged 19% in afternoon trading in Hong Kong after a report police were monitoring the activities of the group's founder, amid fear the group faces liquidation

China’s blue-chip dipped 0.8%, with Hong Kong’s Hang Seng and the ASX in Sydney both tumbling 1.3%, while the BSE Sensex in Mumbai was also down 0.85%.

Tokyo, Hong Kong, Shanghai, Sydney, Mumbai and Singapore, all dropped on Wednesday, as did the smaller regional markets in Wellington, Manila, Taipei and Bangkok.

Chinese creditors voted on Monday for proposals to extend repayments on eight onshore bonds worth $1.48 billion by three years. Six were approved, while two were delayed, sources said

Payments of $22.5 million were wired before the end of a 30-day grace period, according to a source close to the company. But a further $162m is due this year on offshore bonds

China's biggest private developer says it faces default risks, while creditors prepared to vote on its proposal to delay payment for an onshore private bond; offshore creditors have in talks with a US law firm

Evergrande said its ability to continue will depend on implementation of its offshore debt restructuring plan, and successful talks with the rest of the lenders on repayment extensions

The PBOC ordered local banks to restrict southbound purchases under the Bond Connect scheme, in a bid to limit the supply of yuan offshore, sources say

Shanghai blue chips saw another fall, but the Nikkei, Hang Seng and other key regional indexes all saw gains on Wednesday

Markets in Asia rose after a week of declines, with the Hang Seng Index rebounding nearly 1% as beaten down China shares climbed up, while the Nikkei was up by a similar amount

Hedge fund boss said China needed to slash its debts as "burdensome debt service payments are freezing the economy, especially at the provincial level"

Debt-laden Chinese builder seeks protection via the US bankruptcy code, which shields non-US firms undergoing restructuring from creditors that hope to sue them or tie up assets in the US