Hong Kong court liquidates Chinese developer, Dexin
Hong Kong
A Hong Kong court ordered the liquidation of Chinese developer Dexin on Tuesday, according to a report, making it the latest firm to be hit with such an order as the sector struggles with a long-running debt crisis.
The decision comes as Beijing tries to shore up the industry, which accounts for a huge portion of the world’s number two economy and is causing a headache for leaders struggling to boost growth.
Dexin joined the growing ranks of Chinese developers under pressure from creditors in the aftermath of a years-long crisis in China’s property market.
Trading of the firm’s Hong Kong-listed shares was halted shortly before noon Tuesday, having fallen more than six per cent since the open.
The Zhejiang-based developer had focused on homes and commercial buildings in China’s relatively wealthy Yangtze River Delta region, Bloomberg News reported.
It reported total liabilities of 64.4 billion yuan ($8.9 billion) as of the end of last year, according to its 2023 annual report.
In March, the firm said it was facing a winding-up petition filed by China Construction Bank (Asia) Corporation Limited after defaulting in December 2022 on payment of 9.95 per cent senior notes with a principal of $350 million.
While a restructuring deal was given the OK last year, Dexin failed to stick to it.
In January, a Hong Kong court ordered the liquidation of property giant Evergrande, once China’s biggest real estate firm, while Country Garden and Shimao are also facing winding-up petitions in the city.
AFP
