Sunac China Holdings , the country’s fourth largest property developer, has missed a coupon payment on a dollar bond for the first time, as offshore bond maturities worth at least US$1.1 billion come due at its debt-ridden peers in China’s real estate sector during the rest of this month. The company saw its bonds slump on Wednesday after it missed US$29.5 million in interest payment on Monday for a 7.95 per cent bond due on October 11, 2023. It is currently in a 30-day grace period, after which it will be in default. The note was indicated at 24.460 cents on a dollar on Wednesday versus 38.639 cents a week earlier, according to prices compiled by Bloomberg. A Sunac 6.5 per cent bond due in 2026 was trading at 23.2948 cents on a dollar on Wednesday, compared with 35.3808 cents on April 6. “Investors were already expecting that Sunac may not be able to make the coupon payment on Monday after its earlier payment extensions, so it’s not an out-of-nowhere surprise,” said Kenny Chung, portfolio manager at Astera Capital. The prices of Chinese developers’ bonds were under pressure to rise further after a recent rebound, he added. S&P downgrades Sunac’s rating ahead of looming debt repayment deadlines Sunac’s first ever failure to make a dollar bond payment comes as its peers face at least US$1.1 billion in offshore bond maturities during the rest of April. China’s beleaguered property developers are once again being tested by piling debt, as lockdowns in cities such as Shanghai hurt home sales in an already sluggish market. At least four developers had bond payments due on Wednesday itself. Zhenro Properties had a US$21.75 million bond due and Agile Group was facing a US$14.6 million coupon payment. Redco Development had interest and principal for its US$12 million note come due. Powerlong Real Estate Holdings, meanwhile, paid the coupon and principal for its US$190 million note due on Wednesday nine days early to boost investor confidence. Among developers facing bond payments later this month, Logan Group is due to pay a US$7.88 million coupon on April 19 for notes due in 2025. Times China is set to pay interest and principal for a US$166.8 million bond a day later. As of Tuesday, China’s high-yield bonds had fallen for three days, as investor concern re-emerged following a three-week rally in the segment. China’s highly leveraged property firms have been embroiled in a debt crisis since last year – China Evergrande Group ’s more than US$300 billion in liabilities first came to light in August. But, with the offshore bond market almost shut amid a 68 per cent slump in new bond issuances in the first quarter, refinancing difficulties persist. Sunac bonds slump as Fitch cuts ratings for a second time on repayment risk Once viewed as among the healthiest firms in China’s 18.2 trillion yuan (US$2.9 trillion) property market, Sunac successfully extended a 4 billion yuan onshore bond for 18 months as recently as April 1, according to a stock exchange filing. Trading in its stock in Hong Kong has been suspended since the same day, after it said that it would not be able to release its 2021 annual results before the March 31 deadline .