Guangdong-owned Zhuhai Huafa defaults on trust payments, seeks loan extensions

Zhuhai Huafa, wholly owned by the Guangdong government, defaulted on two trust-product payments and is seeking loan extensions from multiple banks, marking the biggest debt-payment delay by a property-focused state conglomerate since China Vanke’s similar move. The group carries roughly 413 billion yuan of interest-bearing liabilities and reported a 16.9 billion yuan loss last year, with half of its 2025 revenue coming from property development.

Its offshore yuan-denominated bond fell about 17 percent, and shares of its real-estate arm dropped nearly 9 percent in Shanghai. Despite the setbacks, credit analysts note the firm’s “AAA” rating and anticipate substantial local government backing, though funding access remains tighter than for centrally owned enterprises. The episode underscores the lingering strain of China’s prolonged real-estate debt woes despite recent market stabilisation efforts.