The loss of confidence in China’s property sector could feed into a contagion that would further drag down the Chinese economy, analysts warned.
The comments come after beleaguered developer China Evergrande Group failed to deliver a promised $300 billion restructuring plan over the weekend.
In filings with the Hong Kong stock exchange, Evergrande instead said it had “preliminary principles” in place for the restructuring of its offshore debts. It also said one of its subsidiaries, Evergrande Group (Nanchang), had been ordered to pay an unnamed guarantor 7.3 billion yuan ($1.08 billion) for failing to honor its debt obligations.
“For the government, the priority is to break the negative…