SHANGHAI, (Reuters) – Shares and bonds of Chinese property firms fell more on Wednesday as China Evergrande Group failed to pay its third round of interest payments for dollar bonds. This was three weeks after others had warned about defaults.

Global investors are worried about debt contagion spreading, and the spread option-adjusted on the ICE NYSE: BofA Asian dollar High Yield Corporate China Issuers Index soared to a record high of 2,337 base points on Tuesday evening U.S.-St.

Data from Shanghai Stock Exchange showed that onshore bonds issued to developers Shanghai Shimao Co Ltd (and Country Garden Properties Group) fell between 1.1% and 4.2% on Wednesday morning.

A sub-index that tracks A-shares from property companies fell 1.58% against a 0.31% increase in blue-chip CSI300.

Due to the typhoon that impacted Hong Kong, markets in Hong Kong were closed Wednesday morning.

Evergrande failed to pay coupons worth nearly $150million on three bonds due Monday. This was in addition to two missing payments from September. Although the company technically hasn’t defaulted on these payments (which have 30-day grace periods), investors claim they anticipate a prolonged and difficult debt restructuring process.

Hengda Real Estate Group Co is the company’s primary unit and will be paying a 121.8million yuan bond coupon on October 19. Evergrande faces another $14.25million dollar bond coupon on Oct. 30,

Evergrande is not the only place where debt pressures are high. Chinese property developers have 555.88 Million worth high-yield bond coupons in the due month and $1.6 Billion due by year’s end.

Fantasia, Evergrande’s smaller rival in size, has already missed a payment. Modern Land and Sinic Holdings have tried to postpone payment deadlines. However they would most likely still be classified as default by the major rating agencies.

Capital Economics’ analysts wrote in a note that the stories “have challenged Evergrande’s idea of one-of a kind.”

They said that while China’s policymakers may be able avoid “doomsday scenarios”, the property market will still continue to be burdensome for the second-largest country in the world.

Construction activity will slow down even after a restructuring orderly of the most affected developers and with little contagion to financial systems.

Although the IMF indicated Tuesday that China can address Evergrande’s debt, they warned that any escalation could cause financial instability.