A Hong Kong court has ordered the liquidation of Chinese developer Dexin, according to a report, making it the latest company to face such an order as the sector grapples with an ongoing debt crisis.
The decision comes as Beijing seeks to stabilize the industry, which plays a significant role in the world’s second-largest economy and poses a challenge for leaders striving to boost growth.
Dexin joins the growing list of Chinese developers facing pressure from creditors in the aftermath of a long-standing crisis in China’s property market.
Trading of Dexin’s Hong Kong-listed shares was suspended on Tuesday after falling over six percent since the market opened.
The Zhejiang-based developer primarily focused on residential and commercial properties in China’s relatively affluent Yangtze River Delta region, as reported by Bloomberg News.
According to itsĀ annual report, Dexin reported total liabilities of 64.4 billion yuan ($8.9 billion) as of the end of last year.
In March, the company revealed that it was facing a winding-up petition filed by China Construction Bank (Asia) Corporation Limited after defaulting on the payment of 9.95 percent senior notes with a principal amount of $350 million in
Although a restructuring deal was approved last year, Dexin failed to adhere to it.
In January, a Hong Kong court ordered the liquidation of property giant Evergrande, formerly China’s largest real estate firm. Additionally, Country Garden and Shimao are also facing winding-up petitions in the city.
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