Cover Story: China Restarts Stalled Property Megaproject in State-Led Takeover

1. [para. 1][para. 2] China has restarted construction of the 596-meter 117 Tower in Tianjin, a long-abandoned private megaproject that once symbolized debt excess, after a decade of stagnation. The restart follows a state-led takeover aimed at restructuring distressed real estate assets.

2. [para. 3][para. 4] In November, a consortium led by China State Construction Engineering Corp. (CSCEC), including China Cinda Asset Management Co. and a Tianjin municipal entity, acquired the project and related assets for about 8.7 billion yuan ($1.3 billion). Approximately 4,000 to 5,000 workers are back on site, with completion scheduled for April 2027.

3. [para. 5][para. 6] The tower is a benchmark of how private megaprojects unraveled under debt pressure. Originally developed by Hong Kong businessman Pan Sutong, founder of Goldin Properties Holdings, the project envisioned a $10 billion central business district, with construction starting in 2008 but stalling in 2015 due to Pan’s leveraged expansion.

4. [para. 9][para. 10][para. 11] Pan built his fortune in consumer electronics and expanded into property and financial services. By 2022, the Hong Kong High Court declared him bankrupt and ordered liquidation of related entities, with court filings showing total liabilities exceeding 100 billion yuan. Major creditors include Bank of China (exposure of about 46 billion yuan), China Citic Bank, and Cinda.

5. [para. 12][para. 13][para. 14] Illicit loans to Pan’s Goldin group exceeded 100 billion yuan, all nonperforming, drawing regulatory attention and leading to investigations of several financial executives. Pan’s current whereabouts are unclear, with suggestions he may be in London.

6. [para. 16][para. 17][para. 18][para. 21] Bank of China’s exposure exposed internal divisions: its corporate banking unit was cautious, while the international settlement department used structures like factoring to support Pan’s electronics business. Regional branches differed—the Guangdong branch limited exposure, while the Shenzhen branch treated the group as a key client, with much of the lending flowing into the 117 Tower project.

7. [para. 20][para. 24][para. 25][para. 26] Several Bank of China executives involved in lending faced penalties, including former Shenzhen branch executive Ding Jie (banned in 2022) and former branch head Wang Shaojun (penalized in 2022 and investigated in 2025). Debt restructuring included transferring about 22 billion yuan of debt to Pan’s real estate company in 2018 and a further 5 billion yuan in 2020, consolidating liabilities into property-linked entities.

8. [para. 29][para. 30][para. 31][para. 32] Citic Bank became involved through Goldin Properties’ 2017 privatization, providing HK$12 billion in fully debt-financed loans. Citic Bank’s then-President Sun Deshun later received a suspended death sentence for bribery, with state media linking his lending to property projects. Cinda participated in earlier restructuring in 2016, providing billions in financing and later filing lawsuits to recover defaulted obligations.

9. [para. 34][para. 35][para. 36][para. 37] The November consortium acquisition aims to revive the project, with state-owned entities coordinating resources and bringing new capital. Local planning includes transport links and infrastructure upgrades to support a new business district, and property prices nearby have risen by 1,000 to 2,000 yuan per square meter this year.