UK's biggest insurer by assets, Aviva Plc, was watching out for default red flags while China continued its cleanup on shadow banking. The crackdown in China would collide with the scheduled heaviest debt repayment.

According to the information compiled by Bloomberg, borrowers from the globe's second-biggest economy owned around US$112 billion of all the kinds of bonds. These bonds were supposed to mature this July. The repayment would be the highest since April 2011.

The corporations in China make up eight of the ten financially ineffectual issuers of US dollar-denominated notes in Asia excluding Japan. The information came from Standard Chartered Plc's report. The report was publicized on July 5 and it included details regarding profitability, leverage and capital structure.

"It's important to look at your portfolio and decide whether the corporates in which you hold positions have any financing vulnerabilities," Aviva Investors Asia Pte's Singapore-based fixed-income portfolio manager, Tim Jagger, said. Aviva Investors Asia Pte was a unit of Aviva. "If they are highly dependent on bank debt or trust financing, which is obviously an area that is receiving the authorities' attention, that's an obvious red flag."