Embattled Chinese real estate developer Country Garden may avoid a default on its yuan-denominated bonds after most holders of a local note agreed not to demand repayment this week, according to Bloomberg News.

During a meeting at the Shenzhen Stock Exchange last week, most investors agreed to forego a put option expiring Dec. 13 that allows investors to demand repayment before maturity next year, the news outlet reported Tuesday, citing unnamed people with direct knowledge of the matter.

The report came after markets in Hong Kong and mainland China closed. Country Garden shares in Hong Kong closed higher by more than 8% on Tuesday, prior to the news.

CNBC has reached out to the company for comment.

Country Garden was once the largest non-state-owned developer in China by sales. It ran into financing troubles this year, and defaulted on a U.S. dollar bond last month, according to Bloomberg.

Economic growth in China has been sluggish due in part due to serious debt problems that some of the largest real estate developers are facing, as Beijing moves to deleverage its once-bloated property sector — which accounts for about 33% of its economy.

Nomura estimated the size of unfinished, pre-sold homes in China to be about 20 times the size of property developer Country Garden as of the end of 2022.

Read more on Bloomberg’s report that Country Garden could avoid a yuan bond default