How Hong Kong Property Giant New World Ran Into Trouble

Once a symbol of Hong Kong’s property-fueled prosperity, New World Development Co. has become one of its most visible casualties. After years of easy credit and unabated expansion, the property giant – once among the most deep-pocketed in the city – is facing a financial reckoning.

The first major hint of the company’s troubles emerged in 2024, when the developer reported its first loss in two decades. By mid-2025 its problems had deepened: net debt had reached about 98% of shareholder equity, according to Bloomberg Intelligence, making it one of the most leveraged major developers in Hong Kong.