China's Largest Developer Faces Default, Deepening Real Estate Crisis

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.

The default would strain China's onshore lenders and could delay recovery of the property market and overall economy.

Country Garden has around $17 billion in offshore debt and total liabilities of $191 billion. A default could impact project completion.

Since 2021, Chinese developers accounting for 40% of home sales have defaulted on over $114 billion in dollar bonds.

Beijing has not directly bailed out private developers, but accelerated measures to boost home-buying. More policies may be needed to avert a crisis.