The voting will have onshore creditors decide on approving a proposal by Country Garden to extend repayments of eight onshore bonds by three years.

Country Garden last month said it had not paid coupons on the bonds due on Aug 6 totalling US$22.5 million, exacerbating market fear that the developer was slipping into a worsening liquidity squeeze.

The financial woes of Country Garden have highlighted the fragile state of the country's real estate industry, which accounts for roughly a quarter of the economy and whose debt situation has been dire since 2021.

It remains to be seen whether a raft of government stimulus measures will help revive demand, ease the sector's cash squeeze and lift the gloom over the world's second-largest economy.

Country Garden is China's largest private developer.

Country Garden had total liabilities of 1.4 trillion yuan at the end of 2022.

It has already flagged a net loss of up to RM35 billion in the first six months.