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Yulu Ao

There is no end in sight for the woes of indebted Chinese developers, which continue to face winding-up hearings and receive fresh liquidation petitions in Hong Kong that will decide their fate.
Sunac China Holdings and Shimao Group Holdings received new liquidation petitions on Friday, while Country Garden Holdings and Times China Holdings face court hearings later this month.
Meanwhile, Tianji Holding, a Hong Kong-incorporated unit of China Evergrande Group, got an eight-week reprieve after a Hong Kong judge on Wednesday adjourned a winding-up hearing to March 12.
Edward Middleton and Tiffany Wong of Alvarez & Marsal Asia, the liquidators for Evergrande, filed the petition against Tianji in November.


This is the second liquidation lawsuit hearing in a week against an Evergrande offshore unit. Last Friday, a Hong Kong court ordered CEG Holdings BVI to be liquidated, according to a statement from the developer on Monday.
A year ago, the Hong Kong High Court ordered Evergrande to liquidate after it failed to restructure almost US$20 billion of defaulted offshore debts. After the fall of the industry behemoth, more creditors followed suit, stepping up litigation to seize their assets or force them to speed up their repayments.
This led to a jump in liquidation lawsuits last year. A total of 13 cases – all related to property bonds – entered the courts, according to data from ratings firm S&P Global. China’s liquidity-squeezed developers face more than 700 billion yuan (US$95.5 billion) of bond maturities this year.
Country Garden, once the mainland’s largest developer by sales, earlier this month proposed restructuring terms to reduce its offshore debt by up to US$11.6 billion. The Foshan-based company, which reported a record loss for 2023 and a narrower loss for 2024 on Tuesday, faces a liquidation petition hearing on January 20 in Hong Kong.
Guangzhou-based Times China faces a liquidation hearing on January 27 for defaulting on financial obligations totalling US$266 million.
Beijing-based Sunac, which in late 2023 became the first mainland developer to win court approval for its offshore debt overhaul, is planning another round of restructuring, after its troubles deepened following a liquidation petition filed by China Cinda (HK) Asset Management on Friday over an unpaid US$30 million loan.
On the same day, Shanghai-based Shimao received another liquidation petition filed by CPYM Link Investment, after it dodged liquidation in a similar lawsuit filed by China Construction Bank (Asia).
S&P said in a report in November that not a single defaulted company “was able to settle out of court”, as the property downturn and slowing growth pushed them into deeper distress. About 56 per cent of legal cases related to defaulted property bonds remain unresolved, the report said.


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China property

Cases involving indebted mainland Chinese developers will come up before the courts in Hong Kong that will decide their fate. Photo: Warton Li

Indebted developer Sunac China faces liquidation threat in Hong Kong

A man passed a Sunac logo in Beijing. Photo: Reuters 

China property: rising home sales bode well for sector reeling for last 4 years

Home sales in China’s top four tier-one cities – Beijing, Shanghai, Guangzhou and Shenzhen – rose 35 per cent year on year in December. Photo: EPA-EFE

A woman passed a Country Garden development in Tianjin, China. Photo: Reuters 

Chinese builder Country Garden details offshore debt restructuring

Condominiums under construction in Beijing by Country Garden Holdings in February 2024. Photo: Kyodo

A housing complex under construction by Country Garden in Tianjin in June. Photo: AFP

Business

China Business

Property

Hong Kong & China

Sunac and Shimao have received new liquidation petitions, while Country Garden and Times China face court hearings this month


Sunac and Shimao have received new liquidation petitions, while Country Garden and Times China face court hearings this month.
