Chinese property developer, Shimao Group is facing a legal challenge as China Construction Bank (Asia) filed a liquidation petition against it in Hong Kong over a financial obligation amounting to HK$1,579.5 million, equivalent to $201.75 million.
This move marks a departure from the norm, as it is unusual for a state-owned bank to initiate legal proceedings against a mainland developer outside China’s borders.
The development had a ripple effect through the market, with Shimao’s Hong Kong-listed shares dropping by about 8.8 per cent in early trading.
Shimao Group vehemently opposed the lawsuit while saying that it would proceed with its plans to restructure about $11.7 billion of offshore debt, with the intention of slashi…
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