Default fears continued to stalk China Evergrande Group on Tuesday, as markets looked for possible intervention by Beijing to stem any domino effects across the global economy.

Evergrande’s troubles are becoming the country’s “Lehman moment,” and the concerns about the spillover risks of a messy collapse of what was once China’s top-selling property developer have roiled markets.

Investors in Evergrande, remained on edge.

Its shares were sold-off again on Tuesday, falling as much as 7 per cent, having tumbled 10 per cent in the previous day on fears its $305 billion in debt could trigger widespread losses in China’s financial system in the event of a collapse.

Other property stocks such as Sunac, China’s No.4 property developer, and state-backed Greentown China on Tuesday recouped some of their hefty losses in the previous session.

However, the spillover concerns were very much front and centre of investors’ minds. S&P Global Ratings downgraded Sinic Holdings Group Co Ltd to ‘CCC+’ on Tuesday, citing the Chinese developer’s failure to communicate a clear repayment plan.

Hong Kong-listed shares of small-sized Chinese developer Sinic plunged 87 per cent on Monday, wiping $1.5 billion off its market value before trading was suspended.

Elsewhere in Asia, broad selling pressure persisted, as investors fled riskier assets on Evergrande contagion fears. Mainland China markets are closed for a holiday, while Hong Kong markets, where the firm is listed, will be shut on Wednesday.