Country Garden Defaults on Bond, Deepening China's Real Estate Crisis

Country Garden, once China's largest developer, has defaulted on an international bond amid the country's real estate crisis.

The struggling firm has $190 billion in debt and warned it could default as sales plunged 81% and it posted a record $7 billion loss.

Its downward spiral is reminiscent of Evergrande's collapse last year that sent shockwaves through China's economy.

Country Garden's crisis reignited fears about the shaky real estate sector, which accounts for 25-30% of China's GDP.

China has a huge surplus of unsold homes but prices keep falling as developers struggle, impacting economic growth.