Country Garden Miss of $15M Payment Fuels Default Worries for China's Largest Developer

Country Garden's $15 million coupon payment deadline passed without payment, fueling default expectations. Non-payment would trigger cross-defaults on other bonds.

Country Garden has almost $11 billion in offshore bonds. A default could lead to one of China's largest corporate debt restructurings.

Scores of Chinese developers have defaulted since 2021 when regulations aimed to curb high debt. The industry is 25% of China's economy.

Country Garden said it expects to miss offshore debt obligations and seeks a "holistic" solution. Its bond prices have plunged 70% this year.

Developers accounting for 40% of Chinese home sales have defaulted on $110 billion in offshore bonds since 2021.