The recent filing of a liquidation petition in Hong Kong by China Construction Bank (Asia) against real estate behemoth Shimao Group has been seen by some analysts as an indication that the property sector in China continues to struggle. However, for legal specialists in the fields of liquidation, restructuring, and insolvency, such events present new opportunities to expand their client bases amidst increasing demand for their services.
As expressed by Alvarez & Marsal’s managing director Tiffany Wong, creditors are now seeking more formal insolvency routes; viewing them as potential recovery options when friendly restructuring processes fail to progress following extensive negotiations. Cases such as those involving Shimao Group and Country Garden serve as key examples of this trend.
Considering the downturn in the Chinese property sector, there are growing prospects in Hong Kong for firms capitalizing on the need for professional, legal expertise in insolvency and restructuring. This development could also further Hong Kong’s ambition of bolstering its stature as a key legal hub.
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