Troubled Chinese property developer Country Garden faces liquidation petition

Chinese property developer Country Garden has received a liquidation petition from a creditor after failing to repay a loan. The petition was filed by Ever Credit Limited, which had lent Country Garden a term loan facility worth 1.6 billion Hong Kong dollars. This news caused shares in the developer to fall by over 12%. The filing stated that Country Garden would oppose the liquidation petition, and a court hearing has been scheduled for May 17. Last year, a panel declared that Country Garden had defaulted on its debt after missing a bond repayment. China’s real estate sector has been facing a liquidity crisis since 2021, leading to multiple developers defaulting on their debt.