Chinese developer Sunshine 100 to oppose winding-up petition in Hong Kong

Sunshine 100 China Holdings, a mainland Chinese developer facing debts amid China’s property sector downturn, said on Thursday that it plans to oppose a winding-up petition filed against it in Hong Kong. HTI Financial Solutions and Haitong International Financial Products filed the winding-up petition against the developer at the High Court of Hong Kong over an unpaid redemption sum of about US$205 million, including accrued interest, due on March 19, 2025, according to a Sunshine 100 filing with the Hong Kong stock exchange. “The company will seek legal advice and take all necessary actions to protect its legal rights,” the filing said. “Furthermore, the company will oppose the petition, as the board is of the view that the petition does not represent the interests of other stakeholders and may impair the value of the company.” The company added that it would consider applying for a validation order from the court, which would allow it to continue trading despite the winding-up petition. “There is no guarantee that the validation order will be granted by the High Court,” Sunshine 100 said in its filing. If the validation order were not granted but the winding-up order was not dismissed or permanently stayed, all share transfers on or after the commencement date of the petition would be void, it said. The petition, which the company received on Tuesday, was scheduled to be heard by the High Court on May 20, it said. The developer, which focuses on block complexes, shared-service flats and large-scale mixed-use communities, has defaulted on multiple redemptions since 2021. In the first half of 2025, it reported sales of 1.4 billion yuan (US$200 million), down 14.8 per cent from a year earlier, and its net loss reached 1.1 billion yuan, according to its earnings report. Its shares slumped 9.1 per cent to close at HK$0.01 on Thursday. Yi Xiaodi, who founded the company in 1992 under its previous name Guangxi Wantong, is the chairman and executive director. China’s property sector, which accounted for roughly a quarter of the economy at its peak, has been in a prolonged downturn since late 2020, with falling home prices weighing on household wealth. “A shifting economy will intensify diverging credit trends,” said Chang Li, an analyst at S&P Global Ratings, in a research note on Thursday. “Property and oversupplied sectors are likely to remain under pressure. The property sector will continue its search for a market bottom in 2026, given persistently soft demand and rising inventory.” Polarisation trends were likely to persist, characterised by “divergent funding access” for state-owned firms versus private developers, Li added. “Destocking is under way and developers could continue to cut prices to clear inventory,” he said.