China’s property development fell into a deep slump, and pandemic restrictions have worsened a liquidity crisis in real estate. Adding to pressure on the sector is the weakening yuan, making it more expensive for thecompanies to fulfill their offshore debt maturities obligations.

Combined sales at the top 100 developers halved in the first four months of this year. In March, property loan growth slowed to the weakest pace in over two decades.

Amid the risk of joining Evergrande Group, Kaisa Group, and Sunac in the default list, Zhongliang Holdings calls on the bondholder’s approval to extend the repayment.