Struggling Chinese property conglomerate Evergrande Group filed for Chapter 15 bankruptcy protection with a New York federal court on Thursday.

The major real estate developer was declared to be in default in 2021 after the Chinese government tightened restrictions on the property sector.

In July, Evergrande reported an annual net loss of 14.8 billion dollars for 2022. It had posted a deficit of 65.3 billion dollars the previous year.

If the US court approves the filing, the group's assets in the United States will be protected. The world's most heavily indebted property developer is expected to seek ways to rebuild its businesses.

Real estate and related companies in China are facing growing concerns about their management amid the prolonged downturn of the industry. Analysts say the entire Chinese economy could be impacted.