China Property Pain Worsens With Failed Auction, Sino-Ocean Rout

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No buyers bid for Shimao’s land portfolio in Shenzhen, even though the asset was offered at a price 20% lower than its appraised value

(Bloomberg) — Fresh signs emerged Wednesday that China is facing yet more challenges in its property debt crisis.

Defaulted developer Shimao Group Holdings Ltd. failed to find a buyer for a $1.8 billion project at a forced auction, even at a heavy discount. Sino-Ocean Group Holding Ltd.’s bonds tumbled on news that the state-backed builder told some creditors it’s been working with two major shareholders on its debt load.