This shares ShimaoOn Monday, the stock price jumped nearly 7 percent after Caixin, a Chinese business magazine reported that an embattled developer had sold all its residential and commercial real estate properties.

Evergrande, a developer in China, has been trying to reduce the stress of China’s real-estate sector by selling off assets.

Shimao will be the latest company to adopt this strategy. Although the stock lost some of its gains, it was trading at more than 2 percent higher.

It marked an improvement on Friday’s session. it plunged nearly 17%Reuters reports that the trust loan was not fully repaid.

In a Monday note, ratings giant S&P Global said that default risks in China’s real estate sector will likely escalate in the first quarter of this year, especially if policy doesn’t “meaningfully ease.”

“A considerable number of Chinese developers are still facing downward pressure and grappling with tight liquidity,” said S&P Global Ratings credit analyst Ricky Tsang.

Agency said that supervision of pre-sales funds was “very tight”. The agency stated that the agencies are still closely monitoring presales funds. This is limiting cash that can be used for debt repayments and preventing developers from retaining large sums of their property sales proceeds.

China’s vast real estate market has come under increasing pressure from Beijing, which sought to lower developers’ debt burden over the last two-years. Evergrande became the third most indebted global developer, and this led to Evergrande’s financial woes.

These troubles spread to other developers. An increasing number face cash flow problems and have not paid their debt obligations — even relatively healthier developers like Shimao have not been spared.

S&P noted that the total of the sector’s bonds maturing this year is huge, with $40 billion due in the first half of 2022. Outside debt accounts for 54% of this figure.

Tsang stated that there are multiple developers payment obligations around the upcoming Lunar New YearThis further complicates cash management.

Payments to construction firms and suppliers before the Lunar New Year holiday in early February will likely take precedence, S&P said, with authorities emphasizing the importance of honoring home deliveries to buyers.