Asian markets have dropped after issues at China’s largest private property developer prompted renewed concerns about the health of the world’s second biggest economy.

Shares in Country Garden, China’s largest private property developer, collapsed 18% on Monday 15 August after it missed a debt payment and suspended trading in several of its bonds.

The property giant had total liabilities of $194bn at the end of 2022 and is one of the top 500 largest companies in the world. Its potential failure to repay its debts would dwarf the default of developer China Evergrande two years ago. The company risks default if it cannot make interest payments on its bonds by September.

Country Garden boss Yang Huiyan, who was at one point one of the richest women in Asia, said the company was “facing the greatest difficulties since our establishment”.

Last month, property conglomerate Dalian Wanda scraped together a payment for a $400m bond at the last minute. Evergrande, which was the centre of concerns about China’s property market two years ago, last month revealed an $81bn loss.

Renewed concerns about the health of China’s property market saw the offshore yuan fall close to its lowest point this year.