Shimao Group Holdings Ltd. slumped by the most ever as trading resumed following a 16-month halt and the defaulted Chinese developer disclosing steep losses the past two years in long-delayed results, underscoring the sector’s lingering financial stress.
(Bloomberg) — Shimao Group Holdings Ltd. slumped by the most ever as trading resumed following a 16-month halt and the defaulted Chinese developer disclosing steep losses the past two years in long-delayed results, underscoring the sector’s lingering financial stress.
Shares traded as much as 58% lower in Hong Kong. They had last traded on March 31 of last year, before Shimao failed to publish unaudited 2021 results. During the trading halt, a Bloomberg Intelligence gauge of the sector dropped 32%.
Shimao Group Posts Losses of $6.8 Billion Over Two Years (1)
The builder was facing an end—of-September deadline to release the 2021 financials or face possible delisting. Earlier this month, a $1.8 billion project by Shimao failed to find a buyer at a forced auction, underscoring its difficulties liquidating assets amid a weakening property market.
Shimao’s dollar bonds were little changed Monday morning, remaining at around 8 cents, according to prices compiled by Bloomberg.
The builder, unlike larger peers including China Evergrande Group and Sunac China Holdings Ltd., has yet to present a debt-restructuring plan. Shimao, which first defaulted on a dollar bond last July, said earlier this month that it was working with advisers of an ad-hoc group of holders.
Meanwhile, a rally in Chinese property shares continued Monday as the BI gauge climbed more than 20% from a low set just one week ago. Since then, the sector surged as Chinese leaders made stronger pledges to revive an ailing economy by stimulating private consumption and easing housing curbs.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.