Debt Crisis Threatens to Engulf China’s Surviving Developers

  • About two-thirds of 50 major private builders are defaulters
  • The 16 survivors face $1.5 billion bond payments this month
WATCH: Country Garden paid coupons on two dollar bonds within grace periods, avoiding its first default. Kevin Kingsbury reports.Source: Bloomberg
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China’s housing crisis has engulfed the country’s private developers, producing record waves of defaults and leaving a shrinking group of survivors.

Out of the nation’s top 50 private-sector developers by dollar bond issuance, 34 have already suffered delinquencies on offshore debt, according to Bloomberg-compiled data as of Sept. 1. The remaining 16, including Country Garden Holdings Co., face a combined $1.48 billion of onshore and offshore public bond payments for either interest or principal in September. The monthly amount is the highest until January.