Country Garden: China property giant hit with liquidation petition

China’s biggest private property developer Country Garden is facing a liquidation petition, which has been filed in Hong Kong by a creditor.

A firm called Ever Credit Ltd filed the case for non-payment of a loan worth HK$1.6bn ($204.5m; £161.2m).

Last month, rival real estate giant China Evergrande was ordered to liquidate by a Hong Kong court.

Ever Credit is a unit of Kingboard Holdings, a laminates maker and property investor.

Shares in Country Garden fell more than 10% in early Hong Kong trade following the announcement.

Country Garden did not immediately respond to a BBC request for comment.

The firm has been the poster child of China’s real estate crisis with more than $300bn (£236bn) of debt.

Liquidators have been appointed to look at Evergrande’s overall financial position and identify potential restructuring strategies.

That could include seizing and selling off assets, so that the proceeds can be used to repay outstanding debts.

Problems in China’s property market are having a major impact as the sector accounts for a third of the economy.

The industry has been facing a major financial squeeze since 2021, when authorities introduced measures to curb the amount big real estate companies could borrow.

Since then several large property developers have defaulted on their debts in the last few years.