China's property crisis deepens as another big developer gambles on default Risk

Posted on August 17, 2023   |  

China's major developer in the property sector missed interest payments on 2 bonds, sparking renewed investor unease.

Country Garden, once China's largest developer, sees its stock plummet by 16% as it failed to satisfy interest payments, leading to the suspension of yuan-denominated bond trading.

The setback is attributed to Country Garden's temporary liquidity pressure, arising from low sales and a challenging refinancing environment.

China's property industry witnesses a historic downturn with falling new home sales and a string of major defaults, posing significant challenges to economic recovery.

Policymakers in Beijing expressed mounting worry about growth, highlighting the necessity to support the property market's revival as a key driver for stimulating the economy.