It's not the most well-known name in the sector and that's exactly the point. While the likes of Evergrande and Kaisa have been stealing the spotlight lately, what is happening with Shimao may be even more concerning.

The firm has been long considered as one of the industry's healthier players, so the fact that it is running into payment difficulties reflects the notion that no firm is immune to the struggles in China's property market at the moment.

I mean Evergrande is known because of its high leverage but if higher quality firms also start to show signs of cracking, that could be an ominous sign for China's real estate sector. The fear here is that it could spark contagion to other better quality assets and that will be a major hit to global confidence on Chinese markets too.

Often times in markets, when people start talking about the less sexy names and start bringing out issues that should be "working as it should", it is never a good sign. Watch this space.