The Hong Kong High Court has ordered the liquidation of Chinese residential property developer DaFa Properties Group and its subsidiary, YinYi Holdings (Hong Kong), according to an exchange filing.

The winding-up petition was initiated in February by China Construction Bank (Asia) over $360 million in unpaid 12.375% senior notes, which were due in 2022. The financial troubles faced by DaFa Properties reflect the growing wave of insolvency cases among Chinese developers, with companies like Country Garden facing similar lawsuits and China Evergrande Group already ordered into liquidation earlier this year.

Last month, DaFa indicated it was exploring options, including a potential debt restructuring plan, in an effort to address creditor concerns. However, following the court's liquidation order, trading in the company’s shares remains suspended.

(ET)