Shimao Group Holdings, a Chinese developer facing liquidation suits for failing to repay debts, reported higher property sales in May due to Beijing’s stimulus package. Sales amounted to 2.92 billion yuan covering 229,177 square meters. However, sales fell by 27% compared to May last year.
In the first five months of the year, Shimao saw a 42% drop in sales. The Chinese government’s rescue package, including a 300 billion yuan relending facility, helped boost sales for companies like China Vanke and Country Garden.
Poly Property, however, experienced an 18% drop in home sales in May. Market sentiment is expected to improve, but risks such as weak policy implementation and declining home prices remain.
Shimao is facing a liquidation suit from China Construction Bank for HK$1.58 billion. The company is also looking to restructure US$11.7 billion of offshore debt.
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