Evergrande formally cancelled plans to sell a $2.6 billion stake in one of its major units, as Beijing officials went out in force to assure the public that the problems would not spin out of control.

It was in talks to sell a 50.1% stake in its Evergrande Property Services unit to smaller rival Hopson Development Holdings. Evergrande was once China's top-selling developer and is now suffering under more than $300 billion in debt.

Evergrande stated that it had grounds to suspect Hopson had not completed the "prerequisite to make a general offer" for its unit, but did not elaborate.

Evergrande also said that it had made no substantial progress in selling other assets it had put on the market, except for the sale of a $1.5 billion stake in Chinese lender Shengjing Bank Co.

Understanding China's Evergrande Crisis – Forbes Advisor

Fears that a cash constraint at Evergrande, whose liabilities amount to 2% of China's GDP, might spread economic contagion have led to credit rating downgrades for a slew of other severely indebted developers, with some smaller ones already defaulting.

Vice Premier Liu He said that the risks were manageable and that reasonable capital demand from property firms was being met. Yi Huiman, the chairman of China's securities regulator, added that authorities will correctly handle default risks and strive to restrict excessive debt more broadly.

Chinese property developers owe a total of 33.5 trillion yuan ($5.24 trillion). 

Evergrande stated it would keep implementing measures to alleviate the liquidity problems and would utilise its best efforts to negotiate with its creditors for the renewal or extension of its borrowings. If it does not make an already-overdue March 2022 bond coupon payment by Monday, it will officially be in default.