Frantic selling broke out after mid-sized developer Fantasia Holdings missed a bond payment on Monday. Fantasia had issued a statement last month that it had sufficient working capital and no liquidity issues.
Both Fantasia and Kaisa Group saw their dollar-denominated bonds slump as much as 11 cents
Others hit by the selling included R&F Holdings subsidiary Easy Tactic, Central China Real Estate and Greenland Holdings, a company which recently built Sydney's tallest residential town and has plans to do the same in London.
(Reporting by Marc Jones; Editing by Tom Arnold and Jane Merriman)
By Marc Jones