This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Nov. 5, 2026-- Debt trouble at a subsidiary of a local Chinese SOE is raising questions about government support for state-owned companies. Property-related losses, in particular, could test the tolerance and capacity of local governments. That's according to report S&P Global Ratings published today, titled"Credit FAQ: Could The Zhuhai Huafa Case Widen Cracks For SOEs In China?""Zhuhai Huafa Group's property segment has served as its profits pillar but could now turn into a stumbling block,"said S&P Global Ratings credit analyst Christopher Yip. The group's flagship property subsidiary, Zhuhai Huafa Properties Co. Ltd. (unrated), is reported to be seeking bank loan extensions while
