Shares of China’s second-largest property developer hit new all-time low
[ad_1]
Quotes of shares of one of the largest developers in China – Country Garden Group collapsed on Monday by more than 18% on the Hong Kong stock exchange. Now they cost only 0.8 Hong Kong dollars – a historical low price.
Country Garden pulled the entire real estate sector in China. The Hang Seng Mainland Property Index sank 3.7% today.
The collapse of Country Garden quotes was caused by the company’s announcement that trading in 11 types of its bonds was suspended, which usually indicates the debtor’s intention to request a deferment to repay obligations. Estimated Reuters, only in September the developer will have to pay about 9 billion yuan ($1.25 billion) on bonds. According to agency sources, the company has already requested a deferral of payment on one of the types of bonds. This is the first time this has happened in Country Garden history.
Previously reportedthat the company expects to receive a record loss for itself in the first half of the year in the amount of 45 billion yuan ($6.2 billion) to 55 billion yuan ($7.6 billion). Since the beginning of the year, the developer’s shares have fallen in price by more than 70%.
The total debt of Country Garden at the end of 2022 was estimated at $194 billion. The company managed to avoid a default last year. Now the Chinese news portal Yicai writes, citing sources, that Country Garden will begin the process of debt restructuring in the near future. A few days ago, it was reported that the company had already missed a number of payments on dollar bonds totaling $22 billion.
[ad_2]
Source link