Chinese developer misses payment, adding to industry strain

A mid-size Chinese real estate developer has failed to make a $205.7 million bond payment, adding to financial strain in the industry as a bigger rival tries to avoid defaulting on billions of dollars of debt

BEIJING -- A mid-size Chinese real estate developer failed to make a $205.7 million payment due to bondholders Tuesday, adding to the industry's financial strain as one of China's biggest developers tries to avoid defaulting on billions of dollars of debt.

Fantasia Holdings Group announced it missed the payment in a statement issued through the Hong Kong Stock Exchange. It gave no explanation but said it had asked for trading of Fantasia shares to be suspended.

Some Chinese developers are struggling to repay debt after regulators tightened limits last year on their use of borrowed money. That is fueling fears about possible defaults and turmoil in financial markets.

Investors are worried Evergrande Group might collapse with 2 trillion yuan ($310 billion) of debt. The company has missed at least one payment to bondholders abroad but has yet to be declared in default.