Country Garden Defaults on Bond, Deepening China's Real Estate Crisis
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Country Garden, once China's largest developer, has defaulted on an international bond amid the country's real estate crisis.
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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.
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Its downward spiral is reminiscent of Evergrande's collapse last year that sent shockwaves through China's economy.
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Country Garden's crisis reignited fears about the shaky real estate sector, which accounts for 25-30% of China's GDP.
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China has a huge surplus of unsold homes but prices keep falling as developers struggle, impacting economic growth.
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