China’s Country Garden Warns of Not Paying Debt

Concerns over the property crisis in China have yet to be subsided. In the latest development, Country Garden Holdings said that it may not be able to make all of its offshore repayments, including those issued in U.S. dollar notes. This came after the company failed to make a debt repayment of 470 million Hong Kong dollars as of Tuesday.

The company was in a spotlight a few months ago after failing to pay its coupon obligations. However, Country Garden narrowly avoided the default with a $22.5 million in bond coupon payment just before the grace period ended.

Country Garden recorded contracted sales of 6.17 billion yuan for September, representing its sixth straight month of decline and also a decrease of 80.7% from last year.

Investors’ confidence in the Chinese property sector has been on a negative side since Evergrande defaulted in December 2021, which alarmed the whole market of the property crisis in the world’s second largest economy.