Hong Kong High Court Orders Liquidation China South City Holdings

China South City Holdings Ltd., the largest Chinese property developer by assets to be liquidated since China Evergrande Group, has been ordered to wind up by Hong Kong’s High Court following a failed restructuring effort. The ruling, delivered by Judge Linda Chan, came after the company failed to secure sufficient creditor support despite months of negotiations, with creditors urging greater involvement from its largest shareholder, Shenzhen SEZ Construction and Development Group Co. The company, burdened with liabilities of approximately HK$60.9 billion as of December 2024, has had its shares suspended from trading, and its dollar bonds are trading at distressed levels. This liquidation highlights the ongoing turmoil in China’s property market, which continues to drag on the economy despite government interventions aimed at stabilizing the sector. UBS Group AG and other market watchers have pushed back recovery forecasts unless Beijing introduces new stimulus measures. The case adds to a growing list of Chinese developers facing winding-up orders in Hong Kong, underscoring the fragile state of the real estate sector.