The value of Evergrande’s key listed subsidiaries has become harder to gauge following a stock market selloff in China — and the revelation that banks had seized about $2 billion from the property-services unit that had been pledged as security for loans. Some of Evergrande’s largest creditors recently demanded further details on the episode, which had prompted the ouster of Evergrande’s longstanding chief executive.

Overseas bondholders will likely be placed at a lower priority when claiming assets in China, as is the case with many cross-border debt restructurings, Dennis Kwok said.