Advertisement
Banking & finance
Business

Property developer Times China faces winding-up petition filed by Hang Seng Bank in a Hong Kong court

  • Winding-up petition against debt-laden developer Times China Holdings relates to US$266 million debt
  • Times China is seeking to restructure US$11.7 billion worth of offshore debt in its latest efforts to avoid liquidation

Reading Time:2 minutes
Why you can trust SCMP
Hang Seng Bank HQ in Central. Photo: Jonathan Wong
Salina Li
Hong Kong’s Hang Seng Bank has filed a winding-up petition against debt-laden developer Times China Holdings for financial obligations amounting US$266 million, sending share prices of the defaulted company plummeting.
Advertisement
The winding-up petition was filed by Hang Seng Bank, HSBC’s subsidiary, in Hong Kong’s High Court. It comes on the heels of a liquidation suit brought last week by China Construction Bank, the country’s second-largest lender, against another troubled property developer, Shimao Group Holdings, in connection with financial obligations amounting to around HK$1.58 billion (US$201.8 million).

Times China’s shares fell 49 per cent following the announcement. The petition emerges after the company reported poor sales with China’s housing market continuing its downward spiral despite policy measures aimed at boosting the sector.

Founded in 1999, the Guangdong-based Times China reported its contracted sales for the three months ended March 31, 2024 fell 72 per cent to 1.53 billion yuan, from a year ago.

The High Court has set the first hearing date on July 3.

A light show organised to celebrate Times China’s 20th anniversary. Photo: Weibo
A light show organised to celebrate Times China’s 20th anniversary. Photo: Weibo

Time China said it will seek legal measures to “resolutely oppose the petition”, and will consider “if it is necessary to apply to the High Court for a validation order at a later stage after taking into account the status of the petition and the progress of its offshore restructuring”, in a statement to the stock exchange.

Advertisement
Advertisement