Times China’s shares fell 49 per cent following the announcement. The petition emerges after the company reported poor sales with China’s housing market continuing its downward spiral despite policy measures aimed at boosting the sector.
Founded in 1999, the Guangdong-based Times China reported its contracted sales for the three months ended March 31, 2024 fell 72 per cent to 1.53 billion yuan, from a year ago.
The High Court has set the first hearing date on July 3.
Time China said it will seek legal measures to “resolutely oppose the petition”, and will consider “if it is necessary to apply to the High Court for a validation order at a later stage after taking into account the status of the petition and the progress of its offshore restructuring”, in a statement to the stock exchange.
“The company intends to continue to proactively communicate and work with its offshore creditors on the restructuring plan, with the objective of announcing terms to the market as soon as practicable,” according to the statement. It will also negotiate with the petitioner on an amicable resolution as soon as possible, Times China said.
Embattled Shimao faces rare winding-up petition from Chinese state-owned bank
Embattled Shimao faces rare winding-up petition from Chinese state-owned bank
The Shanghai-based developer Shimao said it will “vigorously” oppose the winding-up petition, which it said “does not represent collective interests of the company’s offshore creditors and other stake holders”, and pledged to restructure its offshore debt, it said in a filing to the Hong Kong stock exchange.
Evergrande Group, the world’s most indebted developer, was ordered by a court in Hong Kong to liquidate in late January.
Chinese authorities have been rolling out piecemeal measures to offer property developers a financial lifeline by injecting liquidity into the sector in an attempt to shore up confidence.
Prices of new homes in 70 medium and large cities fell 0.3 per cent from a month earlier, following a similar 0.4 per cent setback in February, according to data released by the statistics bureau. It fell at an annual rate of 2.7 per cent in March, versus 1.9 per cent of the annual rate in February.
