SHANGHAI, (Reuters) – The financial sector is not at risk from the debt defaults of Chinese realty companies, according to state media. However, concerns over China Evergrande Group continue to loom.

This comment was published by Xinhua in a question-and-answer piece about the Chinese economy. The news agency stated that it interviewed relevant departments and authoritative people.

China Evergrande was not mentioned in the article. The article stated that property companies faced debt default problems due to poor management, and failures to adapt to changes on the market.

“It is important to understand that clues will exist if a property defaults on its debts so it can be predicted the risk of spillover into the financial sector,” Xinhua stated.

It stated, in addition to this, that the country would continue to improve real estate taxation reform.

Last week, Evergrande appeared to avoid default after it paid a bond coupon last minute. The company announced on Sunday that they had resumed work in more than 10 cities, including Shenzhen.

These woes echo across China’s $5 trillion property sector. This accounts for quarter of the country’s GDP according to some measures. The string of default announcements has seen rating downgrades, corporate bond slumps and defaults.

Global financial markets are also closely monitoring the debt crisis to see if it spreads.