Property developer, Evergrande, which owns more than 1,300 real estate projects in over 280 cities in China, is now snowed under a crushing debt of RMB 2 trillion ($309 billion). The company has been scrambling to pay its suppliers, and warned investors twice that it could default on its debts. Evergrande said its property sales will likely continue to drop significantly in September after declining for months, making its cash flow situation even more dire. The major fallout from a potential failure could hurt not only the Chinese economy, but spread to markets beyond. 

Major creditors include Agricultural Bank of China, China Minsheng Banking and China CITIC Bank. Some banks, including HSBC and Standard Chartered, have declined to extend new loans to buyers of two uncompleted Evergrande residential projects. Minsheng has cut its loan exposure to Evergrande to RMB 30 billion ($4.6 billion) from RBM 40 billion ($6.2 billion) over the past 12 months. Last year, Evergrande reported total bank and other borrowings of RMB 693.4 billion ($107.4 billion) - including loans granted by trust firms rather than banks. Ratings agencies have repeatedly downgraded the firm, citing its liquidity problems.

News source: Caixin, Reuters and CNBC