BEIJING, April 8, 2024 (BSS/AFP) - Shares in Chinese property giant Shimao Group plunged to a record low Monday after saying it faced a winding-up petition from one of the country's biggest banks.

Beijing has been seeking to alleviate a mounting crisis in the property sector -- once a key driver of growth but now in a deep debt crisis, raising fears about the world's second-largest economy.

Shimao said Monday in a filing to the Hong Kong stock exchange that state-run China Construction Bank had filed a liquidation petition against it on Friday "in connection with a financial obligation" of around US$200 million.

The firm's shares plunged more than 14 percent in Hong Kong on Monday, to a record low of HK$0.39.

Shimao is a major Chinese developer, with residential, office, hotel and commercial properties in cities including Shanghai and Beijing.

The company vowed in the filing to oppose the petition "vigorously" as it continues working to implement plans to restructure its debt.

It said the petition "does not represent collective interests of the company's offshore creditors and other stakeholders".

A winding-up petition against top Chinese developer Evergrande in January resulted in a Hong Kong court ordering the company's liquidation.

Trading in troubled rival Country Garden was suspended last week after the Hong Kong-listed firm postponed the release of its 2023 earnings.