According to the Zhidao Finance APP, Chinasouthcity (01668) fell more than 6% again. As of the publication, it fell 6.4% to HK$0.234 with a turnover of HK$10.3972 million.

According to a report from Caixin, relevant documents from the Hong Kong High Court disclosed on June 3 show that the Special Zone Construction Development Group, which belongs to the Shenzhen State-owned Assets Supervision and Administration Commission, has been summoned, and the claimant who filed a lawsuit seeks at least US$1.4 billion in compensation. The plaintiff in the lawsuit is Citigroup International.

It is reported that Special Zone Construction signed a guarantee with the creditors on August 9, 2022, to assist Chinasouthcity in fulfilling a series of bond repayment obligations. However, Special Zone Construction failed to provide credit support, therefore urging it to repay the unpaid principal, accrued interest, and other expenses. Previously, Chinasouthcity Real Estate failed to pay the principal of a US$11.25 million dollar bond that expired on February 9, and later also failed to pay two batches of bills due in April. Creditors believe that Chinasouthcity has defaulted.