(Yicai Global) Jan. 11 -- Shimao Group Holdings issued a statement today denying rumors that the indebted Chinese property developer is facing a liquidity crisis.

Shimao does not have any matured asset-backed securities payable, it said, adding that although it is in talks with multiple potential buyers about the sale of several properties, it has not inked any deal to sell Shimao International Plaza. The builder also said it will sell some assets to pare debt, but did not say whether they would include the plaza.

China Credit Trust said on Jan. 6 that a unit of Shimao had defaulted on a trust product, but the company issued a denial the next day, saying it had not defaulted on any public debt. The firm’s shares [HKG: 0813] slumped more than 16 percent the same day, and closed down 5.4 percent at HKD4.70 (60 US cents). They rose 0.5 percent today to HKD5.63.

Media reports also said recently that Shimao International Plaza would be sold to a group backed by Shanghai’s state-owned assets manager for about CNY10 billion (USD1.6 billion). Jiushi Group could be the buyer, a source told Yicai Global, though the Shanghai-based firm denied that when contacted.

Shimao International Plaza is regarded as one of the developer’s core assets. A source familiar with Shanghai’s commercial property sector told Yicai Global that a figure of CNY10 billion would be the standard price for the plaza with no discount.

Shimao does plan to sell assets, including core assets in first- and second-tier cities, but non-core assets would be the first to be go, President Xu Shitan said at an earnings press conference last August. The company would raise about CNY1 billion in 2021 from asset divestments, he added.

So far, Shimao’s asset disposal program has outperformed expectations. As of Dec. 29, the firm had sold CNY3.4 billion (USD536.7 million) worth after selling a project in Hong Kong’s West Kowloon, Shanghai Shimao Construction said on Dec. 30, adding that the scale would increase this year.

Editor: Tom Litting