China’s Country Garden Sells Stock to Pay Debts
Chinese real estate firm Country Garden is nearing default with a debt of $190 billion and has reported billions in losses for the first half of the year.
The beleaguered Chinese property developer, Country Garden, announced on Wednesday that it suffered a loss of $7.1 billion in the first half of the year, exacerbating the strain on China's largest real estate developer as it hovers on the brink of financial ruin.
The losses of Country Garden, along with the ensuing cash shortage, are the most recent indicators of the escalating crisis in China's property sector. Years of rampant borrowing have left many of the nation's largest developers burdened with debt they have found difficult to pay back. As China's economy has decelerated in recent months, an already slow property market has come to a halt, pushing Country Garden, which has approximately $187 billion in total debt, to the edge.
Sign up for The Times to read as many articles as you want.