Major Chinese developer faces liquidation petition
28 February 2024
A construction site of residential buildings by Chinese developer Country Garden is pictured in Tianjin, China August 18, 2023. (Image: Reuters/Tingshu Wang/File Photo)
China’s property sector debt crisis has continued to unfold this week after one of the country’s biggest developers revealed that a liquidation petition has been filed against it.
In a regulatory filing to the Hong Kong Stock Exchange, Country Garden Holdings said that it would oppose the petition from creditor Ever Credit Limited, a unit of Kingboard Holdings.
Ever Credit filed the petition in relation to non-payment of a loan worth US$205 million.
It comes a month after China Evergrande Group, which has more than $300 billion worth of debt, was ordered to be liquidated by a Hong Kong court.
China’s government is trying to restore confidence in the property sector, which accounts for a quarter of China’s gross domestic product (GDP).
