Country Garden Selloff Shows Chinese Developer Worries Spreading
- Its shares, notes plunged after failed convertible bond deal
- Fears hit the nation’s largest builder by contracted sales
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China’s largest developer is feeling the pain of dwindling investor confidence as a debt crisis sweeps across the country’s real estate sector.
Country Garden Holdings Co. securities tumbled after it emerged the real estate firm on Wednesday failed to generate sufficient investor demand for a potential $300 million convertible bond. Shares fell 7.8% Thursday, the most in nearly four months, while its dollar bond due 2031 dropped 2.7 cents on the dollar to 72, on pace for a record low, Bloomberg-compiled prices show.