To understand the meteoric rise of Chinese property prices, take a look at Shanghai. In 2000, the price of residential housing was just $455 per square metre. By 2020, the figure had jumped to $5,100. Shanghai and Shenzhen both ranked among the world’s five most expensive cities.

The surge propelled Shimao Group, active in both cities, into the top echelon of Chinese developers. Its default last year was a sign of how bad things were in the property sector. Its apparent failure to auction a key asset, disclosed on Wednesday, is a warning signal for the broader Chinese bond market.

Shimao was trying to sell a large, prestigious block of land in the southern industrial city of Shenzhen. According to the auction platform, no buyer was willing to pay $1.8bn for the project, even though that price was a fifth lower than the appraised value.