Shimao Group Hit with Liquidation Suit Over US$202 Million Debt

The suit from China Construction Bank marks a significant escalation in China's property sector crisis.

Shimao Group, a major Chinese property developer, faces a liquidation suit from China Construction Bank over a US$202 million loan.
The legal action signals deepening debt troubles in China's property sector, with several large developers already defaulting.
Shimao vows to vigorously oppose the suit and is working on restructuring its US$11.7 billion offshore debt.
The crisis in the property sector is part of broader economic challenges in China, including slow recovery and high youth unemployment.
Authorities have introduced measures to support the sector, but pressure on banks and the overall economy continues.