One of investors' greatest fears about betting on China was just confirmed

This story has been developing for months, and it's confirmation of what can go wrong for investors who are making risky bets in an emerging economy.

It's also a reminder that China's economy is slowing, real estate activity is contracting, and developers are financially-stretched.

In a statement from the Hong Kong stock exchange on Monday, Kaisa announced that it did not make an interest payment on either of its bonds due in 2017 or 2018.

The company didn't pay $16.1 million in interest on its 2017 notes, or $35.5 million in interest on its 2018 notes. This $51.6 million missed payment is the first time a Chinese developer has defaulted on US dollar-denominated debts, according to Bloomberg.

Back in January, Kaisa appeared to be on the road to defaulting on its debt, after reports indicated that the company hadn't paid its debt, though company representatives said that they "weren't sure" if the payment was made or not.

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