The Chinese real estate giant in the debt crisis also collapses on the stock market
Chinese real estate development company Country Garden’s debt problems deepened when trading in national bonds was halted, while the company’s shares fell 16 percent to a record low.
While markets were unsettled by concerns that debt problems at China’s largest private real estate development company could put pressure on homebuyers and financial institutions, forecasts for a recovery for the sector and the economy weakened considerably. .
The real estate sector, which is one of the pillars of the Chinese economy, was already going through a difficult time due to the fall in sales, the liquidity shortage and the delinquencies of several real estate development companies since 2021.
CONCERNS RISE
Pressure is mounting for the authorities to restore confidence in the economy, amid concerns that more real estate companies could be on the brink of bankruptcy without financial support.
The company’s shares fell 16.3 percent to HK$0.82, leading the 3.9 percent drop in the Hang Seng Real Estate Index.
According to the report by the Chinese news organization Yicai, a financial source indicated that Country Garden, the country’s largest real estate development company, with total liabilities of approximately $194 billion by the end of 2022, is expected to start the restructuring process soon. . (Reuters)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
