Hong Kong’s Small Builder Debt Woes Mount Despite Property Rally

Some of Hong Kong’s small property developers are grappling with renewed liquidity strains despite signs of recovery in the local real estate market, putting them on shakier ground than larger players in the sector.

One such developer, Far East Consortium International Ltd., saw the biggest daily drop in its bond prices since late 2022 on Thursday after it said it would defer a distribution payment on a $360 million perpetual bond. Far East Consortium, which has residential and commercial property developments in Hong Kong, mainland China and other regions, has been plagued by liquidity strains for years but this is the first time it has made such a move.