Country Garden Holdings, China's largest private property developer, is hours away from defaulting on its $11 billion in offshore debt, yet to make a coupon payment to bond holders due on Wednesday, according to Reuters.

Country Garden's default would set the stage for one of China's largest corporate debt restructurings, with approximately $11 billion in offshore bonds and $6 billion in onshore loans.

It’s worth noting that Country Garden was formally on the edge of default in September, but was able to negotiate an extension of the repayment date.

Market reaction

This headline above exert some follow-through selling to the China-proxy Australian Dollar. At the press time, AUD/USD is losing 0.18% on the day to trade at 0.6353.