An elderly couple walk past a sign in front of a tower in China.
Reports of default and sales of prime property were pushed back Tuesday.
One of the healthiest developers in China is Shimao. The company's Hong Kong-listed and mainland-listed stocks and bonds have plunged in the last few months after warnings of a shortfall in sales. Concerns about the Chinese real estate industry's ability to pay off high amounts of debt have led to the volatility.
In a filing on Tuesday, Hong Kong-listed Shimao Group made its first public response to media reports about the sale of its real estate projects.
The group has not fulfilled its financial obligations according to some media reports. The company distanced itself from the fund, claiming that the developer's subsidiaries were guarantors.
The Chinese financial news site Caixin reported over the weekend that a state-owned company was in talks to buy the Shimao International Plaza in downtown Shanghai.
The company was sent into default by a report Friday that it failed to make full repayment on a trust loan.
The company has not entered into a preliminary agreement regarding the disposal of the International Plaza. The company said it is in talks with potential buyers and may sell some properties in order to reduce the debt of the group.
The company said in the filing that there were no outstanding asset-backed securities.
The shares traded slightly higher Tuesday morning.
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