China South City on Monday became the first state-backed property developer to get a liquidation order from the Hong Kong High Court since the Chinese property sector tipped into a debt crisis in 2021.
The news, announced by the company on Monday, comes more than a year after a group of its creditors filed a lawsuit in the Hong Kong court to recover at least $1.4 billion from China South City.
The world’s most indebted property developer, China Evergrande Group 3333, along with a handful of peers have also been ordered to liquidate since 2021 as they failed to come up with viable restructuring plans or gain enough creditor support for their plans.
China’s property market, once a key growth driver for the world’s second-largest…