Shares in China's Evergrande plunged 24% on Monday, after it was reported to be unable to issue new debt in a sign that its restructuring plan is failing.
The fall also dragged broader Chinese property shares down 2.5% earlier in the week.
Evergrande in its latest statement said that it was unable to meet the eligibility criteria for new debt issuance due to an investigation into its subsidiary, Hengda Real Estate Group.
This comes after the announcement at the end of last week that Evergrande has postponed the meeting of creditors scheduled for today and tomorrow.
The Chinese real estate giant tried to swap maturing debt for long-term notes but it didn't go according to plan.
This indirectly affects efforts to restructure the company, coupled with the latest 'case' last week.
Earlier, it was reported that the police had arrested several employees at its financial subsidiary, Evergrande Wealth Management.
With these problems, the prospects for Evergrande's recovery are dimming and the crisis in China's real estate market is expected to continue, thus dragging down the country's economic growth.
