Chinese property developer Country Garden to be removed from Hang Seng Index on Sept. 4

Chinese real estate company Country Garden Holdings is set to be removed from Hong Kong’s Hang Seng Index on Sept. 4.

The decision comes after the benchmark’s latest quarterly review. The index’s operator said Country Garden will be replaced by pharmaceutical firm Sinopharm.

Property management firm and affiliate Country Garden Services Holdings will also be removed from the Hang Seng China Enterprises Index. It will be replaced by online travel agency Trip.com.

The Hang Seng China Enterprises Index serves as a benchmark that reflects the overall performance of mainland securities listed in Hong Kong.

This is the latest blow to China’s embattled property sector, following news of property developer Evergrande filing for bankruptcy protection in the U.S. last week.

Shares of Country Garden have plunged over 70% so far this year, hitting record lows after the company failed to meet bond coupon payments, issued a profit warning and suspended trading in 11 of its onshore bonds.

Country Garden also has less than 30 days to make coupon payments it missed on Aug. 7 on two dollar bond coupons worth $22.5 million.