Chinese developer Shimao Group Holdings said property sales at its mainland-listed subsidiary slumped last month, piling further financial pressure on one of the country’s top real estate companies. Contracted sales at Shanghai Shimao sank 62 per cent to 1 billion yuan (US$158.4 million) in February from a year earlier, according to a filing to the Shanghai Stock Exchange on Tuesday. Shimao, founded by Hui Wing Mau, also known as Xu Rongmao, in 1989, was regarded as a sound and restrained developer until it fell victim to Beijing’s draconian tightening measures to curb the real estate industry in late 2021. It faces 20 billion yuan of payments this year from onshore and offshore notes, according to Fitch Ratings. The company also faces debt obligations such as trust financing and around 10 billion yuan of asset-backed securities, of which 5.6 billion yuan is due this year. China’s biggest property developers have been struggling to sell homes , as a resurgent Covid-19 pandemic combined with a slowing economy deter big-ticket investments. The collective sales value of China’s top 100 developers fell 47.2 per cent in February from last year to US$63.6 billion, widening the slump from a 41 per cent contraction in January, according to the China Real Estate Information Corporation, which compiles industry data. Meanwhile, Moody’s Investors Service downgraded Chinese developer Logan Group’s credit rating on Monday on concerns over the company’s liquidity and access to funding amid weak market sentiment. The developer’s corporate family rating was lowered to B2 from Ba3, and the company’s senior unsecured ratings to B3 from B1. “The rating action reflects our expectation that Logan’s refinancing risks will be elevated, driven by its weakening liquidity due to its tight access to funding,” said Cedric Lai, a senior analyst at Moody’s in a report . Beijing latest city to report improved land sales, rising sentiment Moody’s also forecast that Logan’s contracted sales will decline notably over the next six to 12 months, driven by weaker homebuyer confidence and diminishing saleable resources as the company slows its land acquisitions amid tight funding conditions. Shenzhen Logan Holdings, a subsidiary of the developer, said in a filing to the Shanghai exchange on Monday that it “faces temporary liquidity challenges” because of declining home sales across the industry. Shenzhen Logan faces debt repayment of 5.3 billion yuan this month.