HONG KONG, June 7 Reuters Some of China39;s distressed property developers face the risk of being delisted, which would reduce their options for restructuring and make them more vulnerable to liquidation, SP Global Ratings said on Wednesday.

China39;s private developers have been in turmoil since mid2021 after Beijing39;s crackdown on debt impacted first Evergrande Group and then spread across the sector.

Property companies were among the biggest highyield issuers in Asia and many aim to use shares of their listed entities to restructure offshore debt after having defaulted on their repayment obligations.

The Shanghai stock exchange delisted Sichuan Languang Development on Tuesday, the first such case for property A shares, and Sinic Holdings was delisted from Hong Kong in April.

In mainland China, SP said the 11 firms at risk of being delisted, including Shanghai Shimao and Yango Group, have offshore and onshore bonds outstanding collectively worth 21 billion.

These firms either closed below or just above 1 yuan on Monday or before they went into trading halt. Shanghai Shimao and Yango did not immediately respond to request for comment.

The agency said its empirical study shows investors typically get about 24 cents on the dollar in liquidation, and liquidation terminates jobs, meaning homes that buyers have bought may not be completed.

Delisting closes options for Chinese developers to recover, and for investors to get their money back, said SP credit analyst…