China Distress Mounts as Country Garden Tries to Dodge Default
- China developer requests adding 40-calendar-day grace period
- Bad debt manager Great Wall’s bonds fell by the most this year
This article is for subscribers only.
China is flashing new signs of financial stress almost on a daily basis, with a property giant making fresh efforts to avoid default and a state-run bad debt manager suffering a bond slump on worries about its own health.
In the latest indication of its liquidity struggle, Country Garden Holdings Co. has proposed a grace period of 40 calendar days for a maturing yuan bond as it seeks to win creditor support to stretch payment into 2026. Meantime, China Great Wall Asset Management Co.’s dollar bonds fell by the most this year Tuesday, as analysts raised concerns over a delay in releasing 2022 earnings.