Country Garden Holdings Co. canceled a HK$2.34 billion ($300 million) share placement, IFR reported, citing a message sent to investors, the latest setback for one of China’s largest private-sector developers.

The primary share placement was canceled shortly after midnight, sole bookrunner JPMorgan Chase & Co. told investors, according to the report. Earlier, IFR said Country Garden was offering 1.8 billion shares at a fixed price of HK$1.3 apiece.

Country Garden warned of a net loss in the first half due to declining profit margins and impairments. Once considered a safer investment among developers, the company has become a proxy for financial contagion in an industry that accounts for about a quarter of the country’s gross domestic product.

Country Garden faces $2.9 billion in debt payments for the rest of the year, with its liquidity woes testing its ability to meet deadlines and avoid a first-ever default. Worries that the developer may miss payments have sent its bonds tumbling in recent weeks.

Representatives for Country Garden didn’t immediately comment when reached by Bloomberg News.

JPMorgan recently downgraded Country Garden’s stock as liquidity concerns surrounding China’s private builders are unlikely to ease anytime soon.