Shimao collapses on the stock market: the Chinese real estate market is in crisis

The scholarship of Hong Kong was the protagonist of an almost unprecedented historical event, with the Actions Of Shimao Real Estate Holdings Ltd What am I collapse drastically after Chinese real estate giant announced its liquidation by China Construction Bank, one of the country's largest state-owned banks. THE Chinese real estate market he therefore continues to be in great difficulty, after other great actors too, we read Evergrande And Country garden, were victims of crashes and financial problems. The situation is also of great concern to the government in Beijing, which is reportedly working on substantial interventions to ease the impact of the property crisis on the world's second-largest economy.

The collapse of Shimao shares

Shimao is one of real estate agents more important than China. Listed on the Hong Kong Stock Exchange since 2006, it saw the value of its shares collapse after receiving a subsidy from the China Construction Bank. liquidation request. The institute, specifically, filed an application with the Hong Kong High Court regarding a financial obligation from Shimao amounting to approximately $1,579.5 million from Hong Kong (around 201 million US dollars, or 185 million euros). The news, made public by the real estate giant in recent days, caused the collapse of the Action on the stock exchange of 14 percent, which allows it to reach a historic low of $0.39 of Hong Kong per share (0.05 euros). The Chinese real estate group's first hearing is set for June 26, as the company continues to lose a lot of value and money on the stock market.

The crisis in the Chinese real estate market

The case of Shimao confirms the profound real estate crisis in China, investors deciding to direct their capital elsewhere. All this is taking place in a scenario of general economic slowdown in China, with a situation which could therefore further worsen, also involving other sectors.

Other cases of crisis in the Chinese real estate sector

The crisis of Chinese real estate market this is easily understood by looking at what is happening in many companies that, until recently, had achieved a leading position in the sector. In January 2024, the Hong Kong court ordered the company to be liquidated Evergrande Real Estate, China's second-largest seller, after negotiations on offshore debt settlement failed to produce the desired results. The same company declared in August 2023 bankruptcy, with a debt of 300 billion dollars and had requested the New York bankruptcy court to apply Chapter 15 of the American Bankruptcy Code, relating to the protection of creditors. Around the same time, a similar fate befell China's largest private real estate developer, Country gardenfor which a request had been made liquidation by a creditor for non-repayment of a loan worth 1.6 billion Hong Kong dollars (approximately 205 million US dollars). Active mainly in the Chinese domestic market, Country Garden had sold around 1.5 million homes before the crisis and had around 124,000 employees worldwide.

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