Chinese property developer Country Garden’s Hong Kong liquidation hearing adjourned

HONG KONG: A Hong Kong court adjourned to June 11 a hearing of a petition on Friday seeking liquidation of Country Garden, providing a breather to the embattled Chinese developer amid Beijing’s efforts to revive the crisis-hit property sector.

A Hong Kong firm filed the petition against Country Garden in February for non-payment of a $205 million loan.

The developer defaulted on $11 billion offshore bond repayments last year and is in the process of an offshore debt restructuring.

The hearing into the petition comes against the backdrop of Chinese authorities stepping up efforts to revive the property sector, which slipped into an unprecedented debt crisis in mid-2021.

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Over the past few years, a growing list of developers has defaulted on debt repayment obligations and a handful of them, including China Evergrande Group, have been ordered to be liquidated.

Beijing’s various policy measures since 2022 have failed to turn around the sector, which represents around a fifth of the economy and remains a major drag on consumer spending and confidence.