In January of this year, the Hong Kong court ordered the liquidation of Evergrande Group’s assets. Then at the end of March, another real estate giant, Country Garden, had its shares suspended from trading in Hong Kong by its board. Additionally, other real estate giants like China Vanke also face various crises. Once ranked among China’s top 20 real estate firms, Shimao Group now also faces a forced liquidation suit. Shimao has been rumoured to be in a debt crisis since 2022, though it has never been confirmed. This direct and mandatory liquidation by China Construction Bank is one of the most prominent attempts by a state-owned bank to recover funds from a beleaguered property developer to date. It also affirms previous statements by Ni Hong, China’s Minister of Housing and Urban-Rural Development, during the Two Sessions that economically non-viable property developers “should go bankrupt or be restructured.”
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Another Real Estate Giant Bankrupt! National Banks Falter, Promoting Swap of Old for New Homes
