According to an internal report, Huarun Group was sued by China Resources Trust for breach of debt, resulting in the group's equity being forcibly executed for auction. Huarun Group's 40% equity in the nearly 1.2 million square meter urban complex project 'Gao Shang Ling Yu' in Shanghai's Putuo District will be auctioned, with a starting price of about 5.348 billion RMB, which is expected to begin on the 8th of next month.

Gao Shang Ling Yu has been basically completed, and the remaining 60% equity of the project is held by CK Asset (01113.HK) and is responsible for development. CK Hutchison-related subsidiaries will also participate in the bankruptcy liquidation auction as holders of preferential purchase rights.

Gao Shang Ling Yu is CK Asset's first large-scale integrated project in Shanghai, which won the land at a base price of 2.2 billion RMB in 2006. The construction area is about 1.17 million square meters, and the project integrates hotels, offices, residences, and entertainment. However, the project has been stagnant after acquiring the land, and it has also been rumored that CK Asset will sell the project.