A man walks outside a property agency featuring posters of the latest high-rise apartment buildings in Hong Kong February 13, 2015. Tyrone Siu/Reuters
The Chinese property sector has been under the gun for years.
Enormous losses, heavy debt burdens, and low demand all plague the industry, and firms keep failing.
Country Garden is the latest to wobble, as Bloomberg reports investors say they haven’t received bond repayments
China’s property sector continues to unravel as another developer falls behind on its debt payments, according to Bloomberg.
Country Garden Holdings – once China’s largest developer by sales – failed to make coupon payments due Monday, investors who hold the firm’s notes told Bloomberg.
The missed payments amount to $10.5 million of interest on a dollar bond maturing in 2026 and $12 million on another note maturing in 2030, per the report.
Country Garden is one of the few remaining private developers still standing after a years-long downturn in the country’s property sector. Last month, Shimao Group defaulted on its debt, announcing losses of $6.8 billion.
While Evergrande, China’s largest developer, reported a whopping $81 billion two-year loss in July – a figure almost triple the GDP of Iceland. The firm’s collapse back in 2021 reverberated through global markets when it failed to repay its debt pile – and in the two years that followed, this has had dire consequences for the nation’s property market.
Country Garden’s woes arrive in spite of the Chinese government’s pledge to rescue the embattled industry. Last week Chinese real estate stocks won a reprieve as Beijing pledged bond financing support to some of the country’s largest companies – and in attendance at the meeting were executives from the firm itself.
But the long-awaited commitment by the central bank to stimulate the slumping sector may arrive too late, at least for Country Garden. The two bonds include a