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Shares of Ronshine China are sliding 12.5%, Dexin China down 6.7%, Powerlong down 4.2%, Sunac China down 3.8%.
Property developer Jiayuan International faces a court-ordered liquidation after losing a winding-up case in Hong Kong. Jiayuan received the order to liquidate assets on Tuesday, nearly eight months after a petition was filed by a bondholder involving US$14.5 million allegedly due on a dollar note.
In addition, property developer KWG Group has become the latest mainland homebuilder to default.
The company failed to make payments on 212 million yuan ($31 million) of bank and other borrowings due Friday, it said in a filing to the Hong Kong stock exchange. The delinquency triggered 31.2 billion yuan of debt becoming repayable on demand. KWG’s annual report showed that the developer faces multiple uncertainties “which cast significant doubt on the Group’s ability to continue as a going concern.”
KWG Group’s shares tumbled by 24% on Tuesday before rebounding more than 3% so far on Wednesday.
