Shares of New World Development Co. Ltd. (00017) plummeted 5% intraday on Monday amid speculation that the Hong Kong property developer was in talks to restructure its existing debt. The sell-off came after the company issued a statement denying such rumors.
In a brief filing, New World Development said it has not commenced any discussions with creditors regarding a proposal to restructure its debt. The company's denial appears to be in response to market rumors that had been circulating about its financial health and ability to service its obligations.
New World Development, one of Hong Kong's largest property companies, has been facing challenges in recent years due to the city's cooling housing market and economic headwinds. While the company has been taking steps to strengthen its balance sheet, concerns about its debt levels have weighed on investor sentiment.
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