Country Garden Holdings, a prominent Chinese real estate developer, has expressed its inability to meet all of its overseas debt obligations, including those denominated in U.S. dollars. Specifically, the company missed a debt payment of 470 million Hong Kong dollars ($60 million) as of Tuesday.
This development has raised concerns as it may prompt creditors to demand accelerated debt repayments or pursue legal action. As a result, Country Garden’s stock experienced a 1.19% decline, contrasting with the broader Hang Seng index’s 2% gain.
Earlier in September, the company narrowly avoided default by successfully making a $22.5 million bond coupon payment and gaining creditor approval to extend the repayment timeline for six onshore bonds by three years.
Furthermore, Country Garden reported contracted sales of 6.17 billion yuan ($846 million) for September, marking the sixth consecutive month of decline, with an 80.7% drop compared to the previous year.Looking ahead, the company anticipates ongoing uncertainty in its liquidity situation and asset sales in the short and medium term, given the lack of significant industry-wide improvements in property sales. This financial instability is part of the broader trend affecting Chinese property giants, including Evergrande, eroding consumer confidence in the real estate sector.
Read Also:
