In August, China experienced its largest monthly capital outflow in nearly eight years.
China had a capital outflow of $49 billion in August, the largest monthly outflow in almost 8 years 🚨 pic.twitter.com/h9dXDHxC8s
— Barchart (@Barchart) October 22, 2023
All roads lead to intervention.
China: pic.twitter.com/VCXEwtgLkA
— Sven Henrich (@NorthmanTrader) October 22, 2023
China’s Country Garden risks default after ‘missing bond payment’
The crisis in China’s property sector deepened as Country Garden, the country’s biggest developer by sales, reportedly missed its final deadline for an interest payment on a dollar bond, putting it at risk of default.
The company, which has about $200bn (£163bn) in liabilities and nearly $11bn in dollar-denominated offshore bonds, was due to make a $15.4m coupon repayment this week, but failed to do so, according to reports. Its share price fell 4% in Hong Kong on Thursday, and is down 74% since the beginning of the year.
Country Garden rejected reports that its founder and chair had both left China. It said in a statement that its founder, Yang Guoqiang, and his daughter Yang Huiyan, who chairs the company and is its majority owner, were “working as normal” in China.
Yang Guoqiang was born into a peasant family and his rags-to-riches tale led to nicknames for him and his company such as “the most grassroots tycoon and the “Universe’s No 1 property developer”. He spent years building up his fortune and worked as a farmer and on construction sites before turning to property development. His daughter was the richest woman in Asia, with an estimated $29.6bn fortune just two years ago, before China’s property bubble burst.
h/t Simian_Stacke