Asian stocks were mostly red on Tuesday in Hong Kong and China as the Chinese property bear market deepened as Beijing's attempt to stabilize the economy wanes following yet more bad news of developer Dexin China Holdings Co. ordered into liquidation by a Hong Kong court.
Dexin became the latest Chinese developer to be ordered to wind down, three months after a petition was filed by China Construction Bank and a year and a half after it defaulted, according to Bloomberg.
The Zhejiang-based developer concentrated most of its residential and commercial buildings across China's wealthy Yangtze River Delta region.
Bloomberg Dexin is now part of an exclusive group of defunct property developers, including Jiayuan International Group Ltd, and China Evergrande Group, that have been ordered by Hong Kong courts to enter a liquidation process.
The expanding list of court-ordered liquidation of Chinese developers comes despite a broad support package unveiled by the central government in recent months.
Goldman's James Busby wrote in a note to clients, "Weakness in the Chinese Property sector continued with worries only being exacerbated by Developer Dexin China getting a liquidation order from the HK court." Last week, we noted the Bloomberg Intelligence gauge of Chinese developers tumbled into a bear market.
A series of developers have defaulted on debt, many idled construction sites, plus sliding home sales, high inventory levels, and waning confidence in the Chinese population about an economic revival.
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