Deutsche Bank (DB) is planning a liquidation lawsuit in Hong Kong against China’s Shimao Group (SHMAY) in a rare move by a foreign entity that comes amid rising credit defaults and the East Asian country’s deepening property sector crisis, Reuters’ Clare Jim and Xie Yu report, citing two sources. Shimao is among the many Chinese developers that have defaulted on offshore bonds, after it failed to make the interest and principal payment for a $1B offshore bond two years ago, the authors note. Following that missed payment, Shimao’s entire $11.7B offshore debt is deemed to be in default, the authors say.
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