Deutsche Bank to file liquidation suit against Chinese developer Shimao, Reuters reports

Deutsche Bank is considering filing a liquidation lawsuit in Hong Kong against a Chinese developer, Shimao Group, as a response to the deepening property sector crisis in China. Shimao, based in Shanghai, has joined the list of Chinese developers that have defaulted on offshore bonds, leading to its entire $11.7 billion offshore debt being in default. The German bank, a creditor of Shimao, plans to file the petition this month after rejecting the developer’s debt restructuring terms. This move by Deutsche Bank is a rare case of a foreign firm initiating a liquidation lawsuit against a Chinese developer.