Controversies

China Aoyuan says it will not pay principal and interest on some offshore debt

China Aoyuan announced it would not pay the remaining principal and interest on two maturing US dollar notes, nor the latest interest payment on another two notes after their grace periods expired. The company said it would preserve cash and advance an overall debt restructuring, and warned that defaults may occur or have already occurred on other offshore liabilities. Progress: the company announced it would suspend some payments and is planning restructuring. Entity involved: China Aoyuan Group Co., Ltd.

Debt default and RMB3.3bn fund transfer draw HKEX censure

China Aoyuan had faced allegations of fraud such as "equity in name, debt in substance" and falsely reporting collections; it carried out debt restructuring after defaulting in 2021; in 2026, HKEX publicly censured 15 directors, including Guo Ziwen, over Aoyuan Health's irregular transfer of RMB3.3 billion in funds to China Aoyuan. Debt restructuring, public censure.

Jinghan–China Aoyuan acquisition payment dispute

Issue disclosure

A report said Jinghan had transferred about 29.99% of its shares to China Aoyuan under the acquisition agreement but had received no further transaction payment beyond a 50 million yuan deposit. China Aoyuan maintained that project handover should occur before it paid the remaining acquisition amount, leaving the transaction at an impasse.

China Aoyuan faces short-seller allegations of financial-report fraud

Issue disclosure

An anonymous source published a short-selling report alleging that China Aoyuan was suspected of financial-statement fraud and said relevant materials had been anonymously submitted to regulators. China Aoyuan's headline response characterized the allegations as a misunderstanding.