China’s Sunac Seeks Bankruptcy Protection in US

More bad news for China's real estate sector. Chinese developer Sunac has filed for bankruptcy protection in a U.S. court. Court documents revealed the move on Tuesday. The move will shield Sunac from its creditors—who are hoping to sue the company—or tie up its assets in the United States. The company is in the midst of restructuring. A seemingly optimistic decision when creditors approved a $9 billion offshore debt restructuring plan on Monday. It marked the first green light for one of China's major indebted developers and sent the company's shares surging as much as 14 percent early on Tuesday. But the stock closed 4.3 percent down after reporters spotted the bankruptcy protection filing. Another of China's real estate giants—Evergrande—also sought bankruptcy protection. Aiming to restructure its over $31 billion in debt. Sunac and Evergrande are two of several Chinese property developers that have defaulted on their offshore debt obligations in recent years. Ever since the sector took a major pandemic-era hit in 2021.