Chinese creditors finding difficulty chasing payments from distressed mainland property developers are seeking help from courts in Hong Kong, Bloomberg reported Thursday.
Courts in the city could rule on mainland cases under reciprocal recognition arrangements established in recent years to help with cross-border enforcement of commercial and insolvency cases, the report said.
Among the cases being heard under these rules is Beijing Oriental Yuhong Waterproof Technology's (SHE:002271) motion to enforce an onshore ruling against Sunac China (HKG:1918) Chairman Sun Hongbin, who was ordered to pay 418.5 million yuan, the report said.
Should the Hong Kong court rule in favor of Yuhong, it could seek to open Sun's offshore assets and take action on the waterproofing company's case against Sunac China's chairman, according to Bloomberg.
The lawsuit could open avenues for onshore creditors to seek redress in Hong Kong against Chinese creditors, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)