Chinese Developer Warns It Might Not Pay $400 Million Bond

A security guard on duty at the gate of a real estate project under development by Kaisa Group Holdings in Hangzhou in eastern China's Zhejiang Province, on Jan. 16, 2015. Chinatopix via AP

BEIJING—A Chinese real estate developer warned Friday it might fail to pay off a $400 million bond due next week, adding to financial strains in an industry that is struggling to avoid defaults on billions of dollars of debt.

Kaisa Group Holdings Ltd., headquartered in Hong Kong, said it tried to renegotiate the debt due Tuesday but too few bondholders agreed to the unspecified terms.