Turmoil in China's property sector continues

As the financial woes of Chinese real estate firm Evergrande Group continue, another Chinese property developer has failed to repay debts.

Trading in shares of the debt-laden Evergrande Group has been suspended at the Hong Kong Stock Exchange since Monday.

Local media report that Evergrande is expected to sell a property management unit to improve its liquidity. Evergrande says trading of its stock was suspended because the group will soon announce a "major transaction," but it has yet to make an announcement on any such a deal.

It remains unclear whether the group will be able to fulfill a number of interest payments on its corporate bonds.

Meanwhile, Fantasia Holdings Group, which is also listed on the Hong Kong market, said it failed to repay a bond of more than 200 million dollars due on Monday. A major credit-rating firm said on Tuesday that it was a payment default on a debt.

The financial problems afflicting Chinese property developers come as the government is stepping up restrictions to try to cool the overheated market. Concerns are rising about possible impacts on financial markets across the world.