The main unit of China Evergrande Group, Hengda Real Estate Group Co, announced on Friday that it has not made substantial progress in disposing of the real-estate giant's assets, as reported by Reuters.

The group further noted that it cannot guarantee it will be able to continue to meet the financial obligations under contracts.

Market reaction

This development doesn't seem to be having a significant impact on market sentiment. As of writing, the Dow Futures were flat on the day and the S&P Futures were down 0.08%.