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China property crisis: Dexin joins list of developers ordered to liquidate in Hong Kong
- China Construction Bank (Asia), the trustee of Dexin’s note holders, filed the petition three months ago seeking repayment of a note worth US$350 million plus interest
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Dexin China Holdings has joined the growing list of troubled Chinese property developers facing liquidation as impatient creditors take them to court in an attempt to claw back the money they are owed.
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The Zhejiang-based developer received a winding-up order from a Hong Kong court on Tuesday, Bloomberg reported. China Construction Bank (Asia), the trustee of Dexin’s bondholders, filed the petition three months ago as it sought repayment of a note worth US$350 million plus interest that was due in 2022.
Dexin’s share price fell 6.6 per cent to HK$0.09 in Hong Kong on Tuesday, before trading of its stock was suspended.
It had 64.4 billion yuan (US$8.9 billion) of liabilities in total as of the end of 2023, according to its annual report.
The liquidation order, which was issued by Justice Linda Chan on Tuesday, is the latest in a string of similar cases to have reached the city’s courts, joining the likes of Jiayuan International Group, Sinic Holdings Group, and China Evergrande Group.
The wave of petitions for liquidation against Chinese home builders follows a slew of defaults that started in late 2020, when Beijing’s “three red lines” policy starved weak developers of funds and triggered more than US$160 billion of junk-bond defaults, according to a Goldman Sachs estimate.
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