Shares fell by 90pc last year, and last month the ratings agency Fitch declared that Evergrande had officially defaulted on its debts after missing a 30-day grace period to repay more than $1bn.

Last Tuesday it missed a deadline for another $255m of payments, although the grace period for this debt has not yet expired.

The Chinese news outlet Cailian reported over the weekend that Evergrande had been forced to demolish 39 buildings in the city of Danzhou within 10 days, because permits to build them had been obtained illegally. It said a notice had been sent to the company by local officials.

Evergrande had been expected to restructure its debt under the eye of Communist Party authorities, which are hoping to prevent the company’s troubles from spilling over into the wider property market.

It has been selling assets and shares in an effort to raise cash. Hui Ka Yan, Evergrande’s founder and chairman, is said to have already put about $1.1bn of his own money into propping up the business.