Hong Kong court rejects liquidation bid against debt-laden property giant Country Garden
A Hong Kong court has dismissed a petition seeking the liquidation of Country Garden, offering temporary relief to one of China’s most indebted property developers as the sector continues to grapple with prolonged instability.
The ruling follows months of financial uncertainty and comes after the company completed a major restructuring of its offshore debt. The petition had been filed by creditor Ever Credit Limited, which sought a court-ordered winding-up of the developer. However, the judge rejected the request swiftly, signaling judicial recognition of the company’s ongoing restructuring efforts.
Country Garden, once China’s largest residential developer by sales, has faced mounting pressure since late 2023 amid a deepening property downturn. The broader real estate sector — long considered a pillar of China’s economic growth — has struggled under tightening regulations, declining home sales and reduced investor confidence. Other major players such as Evergrande Group, Vanke and Kaisa Group have also experienced severe financial distress in recent years.
As of the end of June 2025, Country Garden reported total liabilities of 885.4 billion yuan — approximately €108 billion — underscoring the scale of its debt burden. The company’s shares have remained near historic lows on the Hong Kong market, reflecting continued investor caution despite the restructuring progress. Trading of the stock resumed in early 2025 after a lengthy suspension.
Last year, the international law firm Linklaters advised the developer on the restructuring of roughly $17.7 billion in offshore debt. The company stated that the restructuring plan had received court approval and officially took effect at the end of December 2025.
While the court’s decision removes the immediate threat of liquidation, analysts note that structural challenges remain for both Country Garden and the wider Chinese property market. Weak consumer confidence, unfinished housing projects and tightening liquidity conditions continue to weigh heavily on the industry.
The ruling nonetheless represents a short-term reprieve for a company whose financial struggles have become emblematic of the broader real estate crisis reshaping China’s economic landscape.
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