Investors hire lawyers in anticipation of announcement that troubled property developer will declare itself unable to meet obligations

Analysts estimate Evergrande's 'net gearing', as the ratio of debt to a firm's equity is known, was at least 177% at the end of the first half of the year, instead of the 100% its accounts reported.

The ''vulnerabilities in China's financial system remain elevated and authorities face a difficult balancing act,'' says the Reserve Bank of Australia.  

Shares of Chinese Estates Holdings jumped as much as 32% on Thursday after it announced an offer to be taken private for $245 million.

Tighter rules on borrowing by private developers since last year have hit demand for land. The value of nationwide land sales fell 17.5% on year in August, a study of state data has found.

Two Hong Kong property agencies are suing the grossly indebted China Evergrande Group over alleged unpaid debts, while two other developers have seen their bonds hit hard

Feverish selling broke out after developer Fantasia Holdings missed a bond payment on Monday and Kaisa, Central China Real Estate and Greenland all suffered on Tuesday

Sinic Holdings became the latest developer to be downgraded, while homebuilder Fantasia Holdings' dollar bonds lost nearly half their market value in a selloff on Monday.

With Evergrande reeling under a $305 billion debt pile, it has emerged others are also staring into the financial abyss – with Sunshine 100 China Holdings, China Oceanwide Holdings and China Fortune Land Development all defaulting on payments this year

Many of China's biggest property firms, including the country's second largest, China Evergrande, have seen their bonds plunge amid worries they face collapse

Hopson Development looks set to buy a 51% stake in the troubled group's property management unit. Trading in both companies was suspended on Monday pending further news.

With liabilities equal to 2 per cent of China's GDP, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world.