Investors were left in the lurch after China’s real estate giant Evergrande missed its Thursday deadline for an $83.5m (£61m) interest payment. The Chinese firm is yet to issue an announcement regarding the payment.

The estate, earlier in the week, had said that it had inked a deal over another interest payment worth $35.9m. Amid the rising concerns over the company’s ability to balance out more than $300bn of debts, global markets have a cloud of uncertainty hovering above them.

As per a BBC report, Evergrande’s shares were trading almost 10% lower in Hong Kong on Friday. It had jumped more than 17% the previous day.

While the authorities wait for the next announcement, officials have reportedly warned local governments to get themselves prepared for the potential failure of Evergrande.

The Wall Street Journal described the warning to the local governments as “getting ready for the possible storm.” They based this on the reports by officials who were familiar with the discussions.

This move is being seen by some investors as a sign that the Chinese government’s hesitancy to bail out the giant.

As the anticipation builds, the government is yet to make major announcements on Evergrande. The state media has also divulged non-existent clues about Beijing’s stand on the firm’s crisis.

Also Read | All about the Evergrande crisis and its impact on global stock market

In the coming weeks, the company is due to make a series of other bond interest payments.

The BCC report said that under agreements with investors, the real-estate firm has a 30-day window before the missed payment on the $83.5m offshore bond is rendered a default.

As per some experts, the failure of such a large and heavily indebted property developer may have a major impact on the Chinese economy. Its ripple effect might be felt in the global markets, too.

For the Chinese economy, the real estate industry is a major component as it accounts for almost 30% of gross domestic product. Keeping this in mind, any impact on the real estate sector will have an effect on the country’s growth.