China’s troubled real estate sector plunged further into crisis as Evercastle, one of the nation’s largest developers, failed to make a critical bond payment. The default—its second this quarter—has put global investors on edge, with ripple effects across Hong Kong, Singapore, and even Indian property stocks.

What’s at Stake?

The Chinese government is under pressure to stabilize the market, with tens of thousands of homeowners, banks, and construction firms caught in the fallout. Experts say failing to stem the crisis could impact regional economic growth and dim recovery prospects for Asia-Pacific economies just as global trade faces new headwinds.

Beijing’s regulatory interventions are expected soon, possibly including targeted bailouts or asset transfers to state-owned enterprises. Meanwhile, property prices in key Chinese cities dropped another 5% in November, with new construction starts at a historic low.

“India’s property sector has so far proven resilient, but investors are nervous,” says Mumbai-based analyst Mehul Suri.

Global real estate funds are rebalancing portfolios and bracing for potential further shocks as China’s property turmoil shows no sign of ending.