The Institute of International Finance said Chinese bond markets have suffered total outflows of $105 billion over nine months, while Chinese stock portfolios lost $7.6bn in October, the most since March.

JPMorgan says 20% of "junk-rated" companies in China and two thirds of them in Russia could default in the coming year

In the six months to October, China's onshore bond funds saw inflows of $73 billion, while equity funds faced outflows of $12.6 billion

Some 14 auditors have severed ties with Chinese property firms listed in Hong Kong this year, which has raised concern about debt-ridden developers that have failed to publish financial results

The debt-ridden developer said it hopes to extend its repayment deadline after "experiencing significant declines in its sales and operations"

Shares in Japan closed at their highest level in nearly seven weeks, while world stocks also hit a five-week high and most Asian currencies also eked out gains after a decline in the dollar index

The downgrade to B2 from B1 came after the Chinese conglomerate said last week its units would sell a combined 60% stake in Nanjing Nangang Iron & Steel United for up to $2.2bn

Securities regulators recently asked fund managers to prevent an excessive proportion of institutional investors in money market funds. At least 20% must be invested in liquid assets.

Central bank unable to slow drop past key level, despite vow to buy 100 billion yen ($667 million) of state debt with 10-20 maturities plus another 100bn of bonds with maturities of 5-10 years

Cash has flown mostly out of the bond market, because of China's slowdown, but analysts say there are signs local money is being moved out as confidence in the country's outlook drops

"There is a need to make a quick move to attract more foreign investment into our treasury bond market," finance minister Choo Kyung-said.

Defaults among emerging market companies continued to mount in the third quarter, the US investment bank said, due to troubles in Russia as well as China's property sector.