Chinese Property Giant Country Garden Warns of Possible Default as China's Real Estate Crisis Deepens

Country Garden, once seen as a model Chinese developer, warns it may default on its foreign debt payments soon. Its sales plunged over 80% in September.

The developer says it expects it won't be able to meet all of its offshore debt obligations. Its shares have fallen over 70% this year.

Country Garden's problems highlight the ongoing property crisis in China. Real estate is 30% of China's GDP.

Another major firm, Evergrande, defaulted last year and its billionaire founder is now under police control.

Beijing may feel pressure to prop up the real estate sector. In August it unveiled measures like lower mortgage rates to restore confidence.