China’s biggest developer by sales Country Garden has delayed two international bond payments, Financial Times reported.
Real estate sector in China is still very weak. Country Garden is unable to pay its debts due to liquidity crisis. The company had almost $200 billion in debt at the end of 2022.
Country Garden was one of the best real estate developers during the Evergrande crisis. But liquidity problems are not bypassing it either.
China Evergrande Group is a major Chinese real estate operator. In September 2021, the company’s debts reached $305 billion, causing its shares on the Hong Kong Stock Exchange to plummet 84% within a year and declaring a default.
Real estate sales in 2023 were down by nearly half from a year earlier. That has led to a lack of available cash. The company has a 30-day grace period. If they don’t pay, they default.