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China’s Biggest Builder Sells Stock as Liquidity Crunch Worsens

  • Placement price represents 13% discount to Tuesday’s close
  • Move a sign of challenging funding environment for sector
Updated on

China’s biggest developer is pulling out all the stops to ensure it can service its debt, an indication that the industry’s year-long liquidity crunch is worsening even as policymakers pledge support.

Country Garden Holdings Co. is selling stock at a 13% discount to raise HK$2.83 billion ($361 million). Some of the proceeds will be used to repay offshore debt, it said, helping spur gains in the company’s dollar bonds -- held by global investors such as BlackRock Inc. and Schroders Plc.