Shimao Group, an investment holding company engaged in the property development business with sales once exceeding 300 billion yuan (US$42 billion), resumed trading on the Hong Kong Stock Exchange on Monday. The stock opened with a 55.2-percent decline at HK$1.98 (US$0.25, 1.81 yuan), a market cap of HK$7.8 billion.
Shimao’s debt condition during the past two years was finalized in three financial reports released on July 28, covering 2021, H1 2022, and the whole of 2022. Sales and revenue declined, and debt ratios increased, primarily due to a rise in interest-bearing debt, particularly short-term debt.
Regarding assets, Shimao owns projects construction and completed buildings, including commercial properties and hotels.
Though resuming trading, Shimao Group’s debt crisis remains a challenge, and selling its properties is difficult. The company easily sold assets worth over 70 billion yuan, but subsequent asset sales were not so smooth.
