Chinese developer backs its own winding up in sign of relentless pressure

Limits of stimulus on display as Skyfame no longer vows to 'vigorously' defend itself

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Sale signs adorn residential buildings under construction in Huizhou, in China's Guangdong province, in October 2024. Developer Skyfame, which focuses on southern China, has decided not to oppose its own winding up due to grim prospects. © Reuters

ECHO WONG

February 11, 2025 13:58 JST

HONG KONG -- Roughly two years into an effort to restructure its offshore debt, a Guangzhou-based real estate developer has made an unusual move: It agreed that its operations should be wound up.

Numerous Chinese property companies have been hit with winding-up petitions from creditors amid the country's relentless real estate downturn. Typically, the developers vow to "vigorously" oppose the motions. But Hong Kong-listed Skyfame Realty (Holdings) said in a filing last week that it "could not obtain any funding to support the restructuring and to resolve the company's financial problem," effectively giving up on its attempt to rejigger more than $500 million of offshore debt.