Shimao Group Holdings, one of several Chinese developers which face liquidation proceedings for having gone into default, indicated today in a document presented to the Hong Kong Stock Exchange which in May recorded a recovery in sales, after the Chinese government and the central bank implemented a package of measures to revive the real estate market in serious liquidity crisis.
The Shanghai-based company said sales last month reached 2.92 billion yuan (370 million euros) for properties covering a total area of 229,177 square meters, according to a document filed with the Hong Kong Stock Exchange Kong.
The increase is approximately 12% more than the 2.61 billion yuan (331 million euros) on a surface area of 203,099 m2 that Shimao recorded in April. Compared to May last year, however, sales were down 27%.
In the first five months of the year, Shimao sold properties worth 13.78 billion yuan (1.7 billion euros), a decline of 42% compared to 23.86 billion yuan (3 billion euros) of sales reported in the same period of 2023.
In addition to Shimao, China Vanke and Country Garden, two of China’s largest home builders, also saw their sales increase by about 11% in May.
Shimao faces a liquidation lawsuit brought by China Construction Bank, the country’s second largest lender, over a financial obligation amounting to 1.58 billion Hong Kong dollars (186 million euros). In March, the company said it was seeking to restructure offshore debt worth 10.7 billion euros.
