China's biggest private property developer, "Country Garden," is facing a winding-up petition, which has been filed in Hong Kong by a creditor.
A firm called Ever Credit Ltd. filed the case for non-payment of a loan worth HK$1.6bn ($204.5m; £161.2m).
Country Garden, which defaulted on its overseas debt in October, says it will "resolutely oppose" the petition.
Last month, rival real estate giant China Evergrande was ordered to liquidate by a Hong Kong court.
The court has set the first hearing date for the petition on 17 May, Country Garden said in a statement to the Hong Kong Stock Exchange.
Country Garden's Hong Kong shares were trading down 11% in the afternoon trade on Wednesday, compared with a 1.3% loss for the benchmark Hang Seng Index. The stock has lost over 70% of its value over the past 12 months.
Hal Turner Analysis
With Evergrande having been ORDERED LIQUIDATED last month, the China real estate industry took a massive blow as did banks around the world whose loans to Evergrande must now be written off.
With today's move again the larger - and largest - developer in China, both the real estate industry and the banks are being hit with a one-two-punch.
Evergrande managed to delay their Bankruptcy liquidation for over two years, which allowed banks to prepare for the financial hit. But the larger Country Garden situation does not seem to be following that path of delays.
If the Hong King Bankruptcy court moves promptly against Country Garden, banks will take this larger hit less than one month after taking the Evergrande hit. That's not a lot of time for banks to prepare.
I am not certain right now which banks have exposure to Country Garden, or how big that exposure really is.
Suffice it to say this information WILL be leaking out and the public will get an idea who may be in trouble as a result of this latest collapse in China real estate.
NONE of this bodes well for the Global financial system.
