The decision comes as Beijing tries to shore up the industry, which accounts for a huge portion of the world’s number two economy and is causing a headache for leaders struggling to boost growth.

Dexin joined the growing ranks of Chinese developers under pressure from creditors in the aftermath of a years-long crisis in China’s property market.

Trading of the firm’s Hong Kong-listed shares was halted shortly before noon Tuesday, having fallen more than six percent since the open.

The Zhejiang-based developer had focused on homes and commercial buildings in China’s relatively wealthy Yangtze River Delta region, Bloomberg News reported.

It reported total liabilities of 64.4 billion yuan (US$8.9 billion) as of the end of last year, according to its 2023 annual report.

In March, the firm said it was facing a winding-up petition filed by China Construction Bank (Asia) Corporation Limited after defaulting in December 2022 on payment of 9.95% senior notes with a principal of US$350 million.

While a restructuring deal was given the OK last year, Dexin failed to stick to it.

In January, a Hong Kong court ordered the liquidation of property giant Evergrande, once China’s biggest real estate firm, while Country Garden and Shimao are also facing winding-up petitions in the city.