Latest news with #LindaChan
Time of India
a day ago
- Business
- Time of India
Property crisis continues! China South City ordered to liquidate by Hong Kong court; biggest since Evergrande
The execution of China South City's liquidation may encounter difficulties regarding mainland asset seizure. (AI image) A Hong Kong High Court has issued a liquidation order for China South City Holdings Ltd., marking the largest Chinese construction company by assets to face winding up since China Evergrande Group. This court decision exemplifies the ongoing impact of China's property sector crisis on major real estate firms. Despite governmental support measures, residential sales remain subdued, suggesting a delayed recovery. UBS Group AG has revised its earlier optimistic outlook, now anticipating a postponed revival unless Beijing implements additional economic support. Judge Linda Chan delivered the verdict after the petitioner requested immediate liquidation proceedings. Despite China South City's plea for an additional opportunity, the judge noted the absence of meaningful advancement in their restructuring plans, according to a Bloomberg report. Since 2021, Hong Kong courts have issued no fewer than six liquidation orders for Chinese property developers, including Evergrande, whose complex case involved substantial assets and numerous stakeholders. The execution of China South City's liquidation may encounter difficulties regarding mainland asset seizure. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Once back of the pack, Chinese running shoes now look to surge ahead in S'pore market CNA Read More Undo Bloomberg Intelligence analyst Andrew Chan noted, "There might not be many offshore assets to liquidate," explaining that the company's primary subsidiaries are based in mainland China. The firm's legal representative disclosed offshore debt totalling $1.3 billion, with principal bondholders controlling over 31% of this amount, according to the company's lawyer on Monday. China South City faced disagreements with creditors on multiple fronts. At a May hearing, creditors expressed their desire for increased involvement from the company's largest shareholder, Shenzhen SEZ Construction and Development Group Co., in debt negotiations. Shenzhen SEZ provides keepwell deeds for certain dollar bonds of the builder. These agreements ensure the issuer's solvency without explicitly guaranteeing payment, typically helping to reduce investor concerns about risk. Despite defaulting on dollar notes over a year ago, China South City's bonds were trading at approximately 25 cents as of Monday morning, according to Bloomberg-compiled data. This contrasts with Evergrande's bonds, which traded just above 1 cent before its January 2024 liquidation. China South City's bond prices exceed those of other defaulted developers, including Country Garden Holdings Co. and Sunac China Holdings Ltd., which has completed its second restructuring round. According to Zerlina Zeng, head of Asian strategy at Creditsights Singapore, the liquidation could be prolonged due to the company's substantial size. "We expect poor recovery on its dollar bonds given limited additional financial support from the largest SOE stakeholder, Shenzhen SEZ Construction," she noted. The company shares a similar ownership structure with China Vanke Co., a significant Chinese developer that received state support in January from local authorities in Shenzhen. As of December 31, 2024, China South City reported total liabilities of approximately HK$60.9 billion, with cash and bank balances at HK$717.7 million. Citicorp International Ltd., the trustee of the developer's dollar bonds, initiated the winding-up petition against China South City. Citicorp also filed a separate legal action against Shenzhen SEZ last year. Trading of China South City's shares was suspended in Hong Kong on Monday. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Business Times
2 days ago
- Business
- Business Times
Builder China South City ordered to liquidate by Hong Kong court
[HONG KONG] Developer China South City Holdings was ordered to liquidate by Hong Kong's High Court, making it the biggest Chinese builder by assets to be wound up since China Evergrande Group. The ruling from judge Linda Chan came after the liquidation petitioner asked for an immediate wind-up order. China South City asked the court for 'one final chance', but Chan said that no significant progress had been made on the company's restructuring proposal. The liquidation order shows how China's years-long property crisis continues to shake one-time giants of the real estate industry. Despite government efforts to prop up the ailing sector, home sales are still weak, making any near-term recovery unlikely. Even UBS Group, which had been among the few firms predicting a recovery, is now expecting a delay unless Beijing introduces additional stimulus measures. Hong Kong's courts have issued at least six wind-up orders for Chinese developers since the crisis began in 2021, including one for Evergrande, whose liquidation was one of the most complicated given its asset size and the number of stakeholders. China South City had been at odds with creditors over several issues. During a hearing in May, creditors said they wanted Shenzhen SEZ Construction and Development Group, China South City's biggest shareholder, to play a larger role in the debt talks. They were specifically seeking access to the Shenzhen SEZ Construction's chairman, Li Wenxiong, who serves as a co-chairman of China South City. China South City's ownership structure is similar to that of China Vanke, a major Chinese developer, which received state support in January, led by local authorities in the company's hometown of Shenzhen. China South City had total liabilities of about HK$60.9 billion as at Dec 31, 2024, according to its annual report. The company's shares were suspended from trading on Monday (Aug 11) in Hong Kong. China South City defaulted on its dollar notes more than a year ago. These bonds are still trading at around 25 US cents as at Monday morning, Bloomberg-compiled data show. The winding-up petition against China South City was filed by Citicorp International, which is the trustee of the developer's US dollar bonds. BLOOMBERG
BusinessToday
2 days ago
- Business
- BusinessToday
Hong Kong Court Orders China South City's Liquidation
China South City Holdings Ltd, the largest Chinese property developer by assets to face court-ordered liquidation since China Evergrande Group, has been ordered to wind up by Hong Kong's High Court, dealing another blow to already fragile investor confidence in the country's real estate sector. Bloomberg reported that the ruling from Judge Linda Chan came after the Shenzhen-based company failed to secure sufficient creditor backing for its restructuring plan. The winding-up petition was filed by Citicorp International Ltd, acting as trustee for the firm's dollar bonds, raising fresh concerns about recovery prospects for offshore creditors in China's ongoing property turmoil. China South City, burdened with HK$60.9 billion in liabilities as of Dec 31, 2024, had been in protracted talks with creditors. Disagreements centred on calls for greater participation from its largest shareholder, state-owned Shenzhen SEZ Construction and Development Group Co, and direct engagement with its chairman, Li Wenxiong. The liquidation adds to a growing list of high-profile defaults and court orders since the sector's downturn began in 2021. At least six Chinese developers have been ordered to wind up in Hong Kong, underscoring the limited success of Beijing's measures to stabilise the market. Even UBS Group AG, previously among the most optimistic forecasters, has now pushed back its recovery timeline unless significant new stimulus is introduced. Market watchers say the collapse could further weigh on Chinese high-yield dollar bonds, already trading at distressed levels, and heighten scrutiny of state-linked developers previously seen as safer bets.
Straits Times
2 days ago
- Business
- Straits Times
Developer China South City ordered to liquidate by Hong Kong court
Sign up now: Get ST's newsletters delivered to your inbox Liquidation order shows how China's years-long property crisis continues to shake one-time giants of the real estate industry. HONG KONG – Developer China South City Holdings was ordered to liquidate by Hong Kong's High Court, making it the biggest Chinese builder by assets to be wound up since China Evergrande Group. The ruling from Judge Linda Chan came after China South City failed to win enough support from creditors for its restructuring proposal, following months of talks. The liquidation order shows how China's years-long property crisis continues to shake one-time giants of the real estate industry. Despite government efforts to prop up the ailing sector, home sales are still weak, making any near-term recovery unlikely. Even UBS Group, which had been among the few firms predicting a recovery, is now expecting a delay unless Beijing introduces additional stimulus measures. Hong Kong's courts have issued at least six wind-up orders for Chinese developers since the crisis began in 2021, including one for Evergrande, whose liquidation was one of the most complicated given its asset size and the number of stakeholders. China South City had been at odds with creditors over several issues. During a hearing in May, creditors said they wanted Shenzhen SEZ Construction and Development Group, China South City's biggest shareholder, to play a larger role in the debt talks. They were specifically seeking access to the Shenzhen SEZ Construction's chairman, Li Wenxiong, who serves as a co-chairman of China South City. China South City's ownership structure is similar to that of China Vanke, a major Chinese developer, which received state support in January, led by local authorities in the company's hometown of Shenzhen. China South City had total liabilities of about HK$60.9 billion (S$10 billion) as of Dec. 31, 2024, according to its annual report. Top stories Swipe. Select. Stay informed. Business Keppel to sell M1 unit's telco business to Simba for $1.43 billion Business Nvidia, AMD to pay 15% of China chip sale revenues to US, official says Singapore Healthy lifestyle changes could save Singapore $650 million in healthcare costs by 2050: Study Singapore BTO income ceiling, age floor for singles being reviewed: Chee Hong Tat World Netanyahu says Israel's new Gaza offensive will start soon Opinion Anwar's government: Full house but plenty of empty offices Singapore Man's claim amid divorce that his mother is true owner of 3 properties cuts no ice with judge Business Singapore can deliver and thrive in a fragmented global economy: Morgan Stanley analysts The winding-up petition against China South City was filed by Citicorp International, which is the trustee of the developer's dollar bonds. BLOOMBERG
Bloomberg
2 days ago
- Business
- Bloomberg
Builder China South City Ordered to Liquidate by Hong Kong Court
Developer China South City Holdings Ltd. was ordered to liquidate by Hong Kong's High Court, making it the biggest Chinese builder by assets to be wound up since China Evergrande Group. The ruling from Judge Linda Chan came after China South City failed to win enough support from creditors for its restructuring proposal, following months of talks.
