China's Largest Developer Faces Default, Deepening Real Estate Crisis
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Country Garden, China's largest private property developer, is expected to default on a $15 million dollar bond payment, exacerbating the country's real estate crisis.
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The default would strain China's onshore lenders and could delay recovery of the property market and overall economy.
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Country Garden has around $17 billion in offshore debt and total liabilities of $191 billion. A default could impact project completion.
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Since 2021, Chinese developers accounting for 40% of home sales have defaulted on over $114 billion in dollar bonds.
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Beijing has not directly bailed out private developers, but accelerated measures to boost home-buying. More policies may be needed to avert a crisis.
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