Country Garden, the embattled Chinese real estate firm, made late interest payments on two US dollar bonds shortly before the end of a 30-day grace period, avoiding an imminent debt default, according to multiple state media reports.

The China Securities Journal reported on Tuesday that the company had paid the overdue interest of $22.5 million on the bonds, citing people close to the company.

Country Garden hasn't responded to a CNN request for comment.

That means the property giant has dodged a default on its debt, fueling optimism among some investors that the debt-laden company can address its liquidity crisis.

The two bonds, which were sold to overseas investors, matured on August 6 and the property giant had another 30 days to pay the coupon before it could be declared a defaulter.

This a developing story and will be updated.