First, two years ago, there was Evergrande; now another Chinese property developer that is virtually unknown outside Asia has fallen behind on its bond payments, sending fresh fears through jittery global markets.
This time the builder on the brink is Country Garden, which last year sold almost 700,000 flats and houses, more than any other Chinese developer. However, last week it failed to pay the $22.5 million coupon owed to its international bondholders, reigniting the cashflow worries that have dogged China’s property industry in recent years.
Those fears deepened yesterday when Country Garden moved to suspend trading of its 11 onshore bonds. The news sent its shares, which are listed in Hong Kong, tumbling by 18 per cent to their lowest price on record.
The
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