Country Garden may avoid bond default

Last week, the Shenzhen Stock Exchange met with some bond holders worth 800 million yuan (about 2,700 billion VND) to seek a solution.

The bonds had a December 13 put option that allowed investors to demand repayment before maturity next year. But most of them were persuaded not to exercise the option.

This means Country Garden will avoid defaulting on its yuan bonds for now.

Previously, Country Garden was also included by Beijing in a draft list of 50 developers eligible to receive a series of government financial support.

Country Garden will avoid defaulting on its yuan bonds for now (Photo: CNBC).

The move signals that China may have begun to help some of its major real estate companies. Regulators will finalize the list and send it to banks and other financial institutions in the coming days.

Ms. Ting Meng, credit analyst at ANZ Bank, said that the Chinese government has changed its attitude towards the real estate sector dramatically, with more active support measures.

The appearance of troubled names like Country Garden on the list suggests that the views of Chinese regulators are changing.

But the challenges facing one of the world’s most indebted developers are far from over. Home sales fell 77% in November despite a series of government measures aimed at boosting homebuyer confidence.

Homebuyers' concerns are growing as Country Garden's ability to complete and deliver projects threatens to exacerbate the company's liquidity crisis.

Source: https://dantri.com.vn/bat-dong-san/country-garden-co-the-tranh-duoc-vo-no-trai-phieu-20231212205415584.htm