Bonds and shares of Chinese property developers fell on Friday, with little signs as to how local regulators plan to contain the contagion from cash-strapped China Evergrande Group, which faces roughly $150 million in offshore payment commitments next week.
Evergrande, which is dealing with more than $300 billion in debt and is facing one of the country's worst defaults, missed coupon payments on dollar notes twice last month.
According to a person familiar with the situation, some of Evergrande's offshore bondholders will convene a conference call on Friday evening Asia time to explore possibilities after the business missed payments totaling $131 million last month.
"At this point, the call is basically to get a group of bond holders together so they can negotiate better," said the person, who declined to be named because he was not authorised to speak to the media.
A major newswire first reported that some dollar bondholders were invited by advisers to a call on Friday 0630 EST (1030 GMT) to discuss strategy.
Citi has retained legal firm Mayer Brown as counsel for Evergrande dollar-bond trustee, according to a separate source familiar with the situation who declined to be named owing to the delicacy of the matter. Citi and Mayer Brown did not respond to requests for comment.