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One
of the largest Chinese real estate companies, Country Garden
defaulted on $11 billion in offshore bonds in 2023 and said
earlier this month that its debt restructuring proposal would
reduce its $16.4 billion offshore debt by 70%.
The Hong Kong court adjourned Country Garden’s case until May 26
after the company asked for more time to strike a deal with
creditors.
Country Garden is one of dozens of property companies caught up
in a crackdown on excess borrowing that led many to default on
its debts. It said last week that it posted a net loss of 12.84
billion yuan ($1.76 billion) in the first six months of 2024. In
2023, it reported a net loss of 178.4 billion yuan ($24.4
billion).
The firm had delayed posting the results its 2023 and 2024
interim results.
The debt-ridden property sector, once one of the strongest
engines of growth for the world's second-largest economy, is
struggling to pull out of a prolonged downturn.
Home prices across China have fallen, even as policymakers have
introduced measures such as reducing mortgage costs, lending to
property developers and making it easier to buy homes.
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