China property giant Shimao faces winding-up case

Like several other Chinese property developers, Shanghai-based Shimao defaulted on offshore bonds in 2022.

Last month, it laid out detailed plans to restructure its debts.

State-owned China Construction Bank (Asia) now filed the petition in Hong Kong over Shimao’s failure to repay loans worth HK$1.58bn ($201.8m; £159.7m).

It is rare for a Chinese bank to take such legal action against one of the country’s developers. Similar cases against other property firms were launched by overseas-based creditors.

Shimao said in a stock exchange filing it would “vigorously” oppose the lawsuit.