Real estate giant Shimao, the latest victim of China’s real estate crisis

Shimao, which owns residential buildings, office towers, hotels and businesses in several major Chinese cities, is the subject of a liquidation request.

Shares of Chinese real estate giant Shimao fell to a record low on the Hong Kong Stock Exchange on Monday after it announced it was the subject of a liquidation request by one of the country’s biggest banks.

Chinese government wants to reduce current real estate crisisDue to which fear is being created in the world’s second largest economy. Some developers are on the verge of bankruptcy and falling prices are preventing the Chinese from investing in real estate In the background of economic recession,

In a statement published on Monday to the Hong Kong Stock Exchange, where it is listed, Shimao indicated that state-owned China Construction Bank had filed a liquidation request against it on Friday “in respect of a financial obligation” of about $200 million. . 185 million euros).

In the process, the stock fell more than 14%, hitting a new record low of just 0.39 Hong Kong dollars (0.05 euros).

debt restructuring plan

Shimao is a leading real estate company in China that owns residential buildings, office towers, hotels and retail properties in several major Chinese cities such as Shanghai and Beijing.

In its press release the group promised to “strongly” oppose this liquidation request while continuing to work on the implementation of the debt restructuring plan.

In January, A Hong Kong court orders the liquidation of EvergrandeAnother fallen real estate giant in China whose failures regularly make headlines.

Listing in Hong Kong, end of March country gardenAnother major Chinese real estate group in trouble was suspended after the company delayed publishing its results.

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