Yinyi Co. Ltd. defaulted on a 300 million yuan bond after its investors decided to exercise their right to sell their bonds back to the Chinese real estate developer, Caixin Global reported.

Yinyi said the default was on account of "difficulties in short-term cash flow," in contrast to its April statement, when it cited "good profitability and stable cash flow" as the reasons for its distribution of 2.2 billion yuan in dividends to four major shareholders, according to the report.

Yinyi said it will pursue a number of initiatives to shore up capital to repay the bond, including selling off assets and stakes, suspending dividend payments, and halting salaries and major investments, the report added.

Caixin said the default could lead to other investors exercising their call options for Yinyi debt when they come due in 2019. In the 2019 second quarter, investors will be able to exercise options on three bonds of at least 1.5 billion yuan, the news outlet added.

As of Dec. 25, US$1 was equivalent to 6.89 Chinese yuan.