China property developer Jiayuan to be delisted on Oct 29

Jiayuan International

24/10/2024 05:39

HONG KONG, Oct 24 (Reuters) - Chinese property developer
Jiayuan International  2768.HK  said the Hong Kong stock
exchange has decided its shares will be delisted on Oct. 29
after the company did not meet guidelines for the shares to
resume trading by an 18-month deadline.
    Jiayuan was one of the first Chinese property developers
ordered by the Hong Kong court to liquidate since the sector
slipped into a debt crisis in 2021, resulting in many company
defaults.
    A number of Chinese property developers have been ordered to
liquidate by offshore courts so far, including China Evergrande
Group  3333.HK , and Jiayuan's delisting highlights the struggle
of companies in liquidation to come up with a viable
restructuring solution.    
    "The Listing Committee (of the stock exchange) considered
the company had not fulfilled any of the resumption guidance by
the resumption deadline," the liquidators of Jiayuan said in a
filing late on Wednesday. 
    The guidance from the stock exchange includes publishing all
outstanding financial results since 2022 and having the
winding-up order against the company withdrawn or dismissed. 
    Early this month, Jiayuan's liquidators said insufficient
funding was a critical barrier to restructuring the company and
finding a new investor. The company did not meet the exchange's
guidance by the deadline of Oct. 2.
    Shares of Jiayuan have been suspended from trading since
April 3, 2023 due to the delay in publishing its 2022 financial
results. It received a liquidation order in May last year, as
the Hong Kong High Court decided the restructuring proposal
offered by the company at the time was not a concrete one.
    Evergrande received a liquidation order on Jan. 29 also
because it was not able to come up with a concrete restructuring
proposal to creditors, and its shares have been suspended since.

 (Reporting by Clare Jim; Editing by Jacqueline Wong)
 ((clare.jim@thomsonreuters.com;))