China property-market pessimists are overlooking the underlying demand, as evidenced by strong sales by state-backed property developers and rising rents, according to veteran economist Hong Hao of Grow Investment Group.
China's largest private real estate developer, Country Garden, is in financial trouble, missing bond payments and posting a record loss, signaling further concerns about the country's property sector as housing prices and foreclosures continue to rise, while other economic indicators, such as industrial output and retail sales, fall short of expectations; these developments are raising concerns about the overall health of China's economy and its future growth prospects.
China's property crisis raises concerns about a potential "Lehman Moment" and investors are eagerly waiting to see how Beijing will handle the mounting problems.
China's property developers facing financial distress raises concerns about a debt crisis, potentially leading to a broader financial crisis, according to analyst Charlene Chu.
Shares of Country Garden are expected to increase by 14.8% after selling a minority stake in a mixed development in Guangzhou for 1.3 billion yuan ($178.35 million) and extending a creditor voting deadline to delay repayment for an onshore private bond worth 3.9 billion yuan.
Chinese developer Country Garden reassured investors that its $100 billion project in Malaysia is proceeding as planned and that it has sufficient assets, despite concerns about its financial strength and missed coupon payments. The company's projects in Malaysia are operating normally and its overall operation in the region is "safe and stable," according to a statement from its Singapore and Malaysia unit. Malaysia's central bank also stated that the current situation with Country Garden is not expected to have a material impact on the property market in Malaysia.
China's property crisis has left small businesses and workers owed hundreds of billions of dollars, with suppliers waiting on at least $390 billion in payments, as new projects dry up and financial troubles plague real estate developers like Country Garden.
China is facing increasing financial stress as a property giant seeks to avoid default and a state-run bad debt manager experiences a bond slump, contributing to concerns about the country's economy.
China's property crisis, led by embattled property giants like Evergrande, is causing devastating consequences for small businesses and suppliers who are owed large sums of money, putting both market confidence and debt repayments at risk. The crisis has affected the entire industry and could worsen if immediate actions are not taken to prevent contagion and spillover fears. The Chinese government is urged to abandon restrictive measures on real estate credit, carry out bankruptcy proceedings for developers with capital-outflow problems, and stop intervening in the market to stabilize home prices. The outlook for Chinese developers is deteriorating, particularly for distressed developers, while state-owned developers have a stable outlook. The Chinese housing market is facing a severe crisis that is worse than Japan's market in the early 1990s, posing challenges in filling the gap in spending left by the collapsing housing market.
China's troubled real estate company Country Garden plans to raise funds to avoid default and repay its loans, amid concerns that its liquidity crisis could have a wider impact on China's economy.
China's biggest homebuilder, Country Garden, plans to raise $34 million by issuing new shares in a bid to alleviate its $190 billion debt burden and address the country's expanding real estate crisis.
China's largest private property developer, Country Garden, has warned of default risks if its financial performance continues to deteriorate, following a record loss in the first half of the year. The company's net loss between January and June amounted to 48.9 billion yuan ($6.72 billion), compared to a net loss of 6.7 billion yuan in the second half of 2022 and a net profit of 612 million yuan in the first half of 2022. This comes as Chinese authorities are working to revive the troubled property market, which accounts for approximately a quarter of the country's economy.
China's largest property developer, Country Garden, is on the brink of default after reporting a huge loss, exacerbating the real estate crisis and posing a risk to the country's fragile economy.
Country Garden, China's largest private developer, has obtained approval from its creditors to extend payments for an onshore private bond, providing relief for the embattled company and the crisis-ridden property sector.
Country Garden Holdings, once a leading player in China's property industry, is facing a severe cash crunch that could have more extensive implications for the economy than the default of Evergrande Group, as its declining stock and bond values threaten to trigger broader damage to the real estate sector and consumer confidence.
Chinese property stocks and Japanese government bonds set the tone for global markets as the Hang Seng property index dropped to a fresh September low before rebounding on news that Country Garden won creditor support to delay onshore bond payments, while the Bank of Japan's comments about potential stimulus exit in 2023 pushed the local bond market, and the week ahead is marked by important policy meetings by the Bank of England, the Federal Reserve, and the ECB.
China's largest private property developer, Country Garden, has won approval from its creditors to extend repayment on six onshore bonds by three years, providing relief to the country's crisis-hit property sector.
Country Garden's $100 billion Forest City development in Malaysia, which aims to house 700,000 people, is facing scrutiny from creditors as the cash-strapped developer struggles to meet its debt liabilities and generate revenue from the project.
China's property sector continues to struggle with deepening falls in new home prices, property investment, and sales in August, despite recent support measures, adding pressure to the country's economy.
