The Hong Kong High Court issued the ruling more than a year after creditors filed suit to recover at least US $1.4 billion from the company.
Reuters reported the developer, which is 30% owned by Shenzhen government-controlled SEZ Construction Development, defaulted on HK$16 billion (US $2 billion) of debt last year.
As of the end of 2024, it reported liabilities of HK$60.9 billion against assets of HK$87.6 billion.
The case underscores the deepening challenges in China’s real estate market, which has been in a prolonged downturn despite repeated government measures to revive demand.
Analysts say the liquidation shatters the assumption that state-linked developers are immune from collapse, a belief that has long underpinned investor confidence in the sector.
Shares of China South City, suspended before the announcement, last traded at HK$0.107, down sharply from their 2014 peak of HK$4.73.
The stock will remain halted until further notice.
Industry experts warn the move could further slow recovery, as creditors remain reluctant to accept deep losses, delaying restructuring deals and putting additional pressure on an already fragile market.
