Chinese State Bank Takes Shimao Legal Challenge to Hong Kong

(Bloomberg) – China Agriculture Bank Ltd. The Chinese builder Shimao Group Holdings Ltd.

According to the court documents by Bloomberg News, the state’s bank filed a lawsuit in the city after not being able to collect the money given by a court in the Chinese mainland.

The movement underlines the confusion of creditors-even state banks-even when trying to save funds from problematic property developers. The sector has shown several signs of improvements marked with a default array after a year of decline.

Shimao, one of the biggest developers in China with contracted sales in China, was listed as a defendant in two cases filed by a local branch of China in Anhui Province in August Hefei.

The case focuses on two separate loans guaranteed by Shimao Group and some other branches on the Hong Kong list, provided by Shimao’s two units in Hefei in 2019 and 2020.

In 2022, a Motherland Court ordered Shimao and some units to repay a total of 999 million Yuan, interest and other costs. According to the documents, they haven’t done this until now.

China Agricultural Bank and Shimao Group did not respond to comments.

Shimao, once an investment class company, first reduced the open sea debt in July 2022. China Construction Bank (Asia) Corp. opened a liquidation petition against Shimao in Hong Kong last year, but the builder was rejected after making progress in re -re -reintegration of $ 11.5 dollars.

-Help from EMMA Dong and Zheng Li.

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