The property giant faces debts of £220billion and missed a key bond repayment of $82.5million (£61million) which had been due on Monday. According to credit agency, Fitch, the company has now defaulted, which has sparked concerns for the Chinese economy, and its impact on the world financial market. In order to stop a collapse in the property market, Chinese authorities have created a working group to oversee risk management.

Evergrande is one of the largest property firms in the state, and its collapse could spark serious implications for the market, which is valued at £40trillion.

Due to this, 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.

He said: "China's leadership is attempting to play it cool, but the circumstances surrounding Evergrande's downward spiral raises serious questions about Xi Jinping's stewardship over China's rapidly cooling economy.

"These latest interventions, by both the central government and officials in Guangdong, suggest Chinese officials now begrudgingly accept that Evergrande is, in fact, 'too big to fail'."

Real estate accounts for around 29 percent of China's GDP.

The company's collapse and the subsequent impact on the financial market could spark concern across the financial system as, similar to the 2008 financial crash, lenders may become anxious over the ability of companies to repay debt.

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.

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"It’s even worse than 2008."

Evergrande's Guangzhou Football Stadium has been taken over by local authorities.

The Chinese government will now look to sell the stadium or transfer ownership to state firm Guangzhou City Construction Investment Group.

However, on Monday it missed the latest in a string of debt repayment deadlines.

Fitch reported at the time: "We are therefore assuming that they were not paid."

Fellow property developer Kaisa has also been placed as under "restricted default" by Fitch.

According to The Times, Kaisa has around $11.6billion (£9billion) international bonds outstanding.

Evergrande reportedly owes $19billion (£14billion) in overseas bond repayments.

Evergrande is yet to comment on the matter.