There was no sign that ailing developer Evergrande paid $83 million in interest payments it owed offshore bondholders.
The Thursday deadline for the payment came and went - with complete silence from the firm.
Some offshore bondholders told Reuters on condition of anonymity that they had not received their interest payment by deadline in U.S. time.
Evergrande now enters a 30-day grace period. It will default if that passes without payment.
It has another interest payment due next week, of around $47 million.
Shares of embattled Chinese developer Evergrande dipped as much as 12% on Friday.
The debt crisis of China's cash-strapped property super giant Evergrande is in plain sight, just an hour's drive away from Shanghai.
Residential blocks in Suzhou's Taicang are half-built.
Work halted after Evergrande didn't pay its local partners.
Workers, who also haven't been paid, for months now, are only performing minimum maintenance.
"We haven't been paid since April. I don't even have a cent for food."
Chinese authorities are worried an ugly collapse at Evergrande could crush the property market, which accounts for 40% of Chinese household wealth.
Evergrande has promised to prioritise such investors, and resolved a coupon payment on a domestic bond this week.