After China Evergrande was officially declared to have defaulted on its bond interest repayments last week, shares in fellow property developer, Shimao, plummeted on Tuesday. Amid the uncertainty over the future of China Evergrande and Kaisa Group Holdings, Shimao’s overall share price has fallen by 19.92 percent on the Hang Seng stock index. On Friday, the developer’s stock price had been rated at 8.06 but fell to 5.67 on Tuesday.

Trading was also halted on one of the company’s yuan bonds after prices tumbled, Bloomberg reports.

One of those bonds fell by more than 50 percent on Monday.

While not the size of Evergrande, Shimao still represents a major player in the huge property market in China.

The Chinese property market is estimated at £40trillion and accounts for 29 percent of the state’s GDP.

Shimao’s founder, Hui Wing-Mau’s own shares in the firm fell by 71 percent on Monday.

Last month, rating agency, S&P Global Ratings downgraded the firm to a BB+ rating.

This comes as the Fitch credit agency, reported Evergrande had defaulted on its bond repayments after missing a deadline valued at £61million.

Craig Singleton, an adjunct fellow in the China Program at the Foundation for Defense of Democracies, told CNN the company’s collapse has sparked serious questions over the economy.

JUST IN: US warns Beijing to stop ‘aggressive actions’ in South China Sea

It is thought the company faces debts of £220billion and has been accused of missing several key bond repayment deadlines.

Due to its size and impending collapse, there are fears for the overall state of the global financial market.

According to The Times, Evergrande owes £12billion in overseas bond repayments and has yet to comment further on matters.

Previously, financial experts have claimed the collapse of the company could lead to the collapse of the world system.

Speaking to Express.co.uk, Dr Marco Metzler from Deutsche Marktscreening Agentur (DMSA), claimed the collapse of such a large company could spark the collapse of the world financial market.

He previously said: “This is the first domino of the collapse of the market.

“It will be even worse than the 2008 financial crash.”