* China money markets brace for IPO outflows

* Indian swaps tumble as aggressive bids reversed

* Dollar funding costs hit new troughs

By Umesh Desai

HONG KONG, Nov 5 (Reuters) - China money market rates rose on Thursday as a large initial public equity offer is expected to drain significant amount of funds while swap rates in India tumbled as aggressive paid positions were unwound.

The cost of borrowing dollars in the region edged lower matching last week's record low after the U.S. Federal Reserve retained its dovish stance after its rate setting meeting.

In Singapore, 3-month dollars SIUSDD=ABSG fell to 0.2843 percent from 0.28714 percent, after Federal Open Market Committee overnight statement on rates.

Speculation that the U.S. central bank could alter its tone on a supportive monetary policy had the dollar funding markets on edge on Wednesday.

But after the Federal Reserve pledged it will hold rates near zero for an "extended" period, it caused some reversing of bets particularly in aggressively hawkish markets, such as India.