Chinese Developer Country Garden Slides as Funding Woes Worsen
- Earnings, payment concerns have added to market slump
- Policy support holds key to Chinese developers’ survival
This article is for subscribers only.
One of China’s last major developers to have so far avoided defaults amid the nation’s property debt crisis slid in equity and credit markets Tuesday, after canceling a share placement.
Shares of Country Garden Holdings Co., one of China’s largest private-sector developers, fell as much as 11% in their biggest drop this year, and ended down 7.6%. Its closely watched dollar bond due January next year, its nearest such maturity, dropped 2.3 cents Tuesday to 32.5 cents, a level that indicates high uncertainty on repayment.