China Evergrande, once one of the country's largest real estate developers, has been hit by Beijing's debt crisis in recent years.
The Wall Street Journal previously reported that Evergrande's foreign creditors failed to reach a short-term restructuring agreement this weekend, which could mean an imminent liquidation for the real estate developer.
Evergrande is the world's most indebted real estate developer, which defaulted in 2021 and announced an offshore debt restructuring program in March last year.
Policymakers in China have been scrambling to contain the debt crisis in the struggling real estate sector.
Last week, the People's Bank of China and the Ministry of Finance announced measures to help increase liquidity available to real estate developers.
The measures, which will be in effect until the end of this year, will help ease the ongoing liquidity crisis for Chinese developers after Beijing cracked down on the sector to get a handle on bloated real estate debt.
According to Alexander Cousley, APAC investment strategist at Russell Investments, China's real estate sector remains challenging given the Evergrande news.
“I think the measures need to be much more targeted and much more forceful,” Cousley said on CNBC’s “Street Signs Asia.”
Evergrande's crisis sparked fears that problems in China's real estate sector could spread to other parts of the world's second-largest economy.
Country Garden, also one of China's largest developers, is struggling to pay off its own debts. However, the developer reportedly said last month that it could avoid a default on its yuan-denominated bonds.
This is developing news. Please check back for updates.