On Monday, China Evergrande Group's shares fell 12% to an 11 year low after the firm said there was no guarantee it would have enough funds to meet debt repayments, prompting Chinese authorities to summon its chairman.
The shares fell as a 30 day grace period on a coupon payment of $82.5 million due on November 6 comes to an end on Monday.
Evergrande, once China's top-selling developer, is grappling with more than $300 billion in liabilities. A collapse could cause shockwaves through the country's property sector and beyond.
Evergrande, the world's most indebted developer, said it received a demand from creditors to pay $260 million in a filing late on Friday.
The government of Guangdong province, where the company is based, called Evergrande Chairman Hui Ka Yan, and it later said in a statement that it would send a working group to the developer at Evergrande's request to oversee risk management, strengthen internal controls and maintain normal operations.
In a series of apparently coordinated statements late in the evening, China's central bank, banking and insurance regulator and its securities regulator tried to reassure the market that any risks to the broader property sector could be contained.
In China Evergraned's stock fell more than 12% to HK $1.98, its lowest since May 2010 and will not undermine market fundraising in the medium and long term, the People's Bank of China said.