Some Chinese developers are on the verge of bankruptcy and lower property prices have deterred consumers from making investments.

Vanke – long considered to be financially stable was downgraded by Standard and Poor’s to “BB+” from “BBB+”, citing “weakening property sales and margins” and “slowing land acquisitions”.

“We believe that weakening contracted sales and margins will undermine China Vanke’s competitive position,” the US credit rating agency said.

The downgrade follows similar moves by Moody’s and Fitch in recent weeks.

Vanke was the second-largest developer in China last year in terms of sales, according to specialist firm CRIC.

It is part-owned by the city government of Shenzhen in southern China – once seen as a guarantee of its solidity.

But setbacks make it the latest Chinese developer to be caught up in a mounting crisis within the real estate sector, following Evergrande and Country Garden.