Two years after Evergrande’s default triggered mayhem in the global markets, China’s ailing property sector is teetering on the brink of another crisis.
On Tuesday, Country Garden, the country’s biggest private-sector developer by sales, missed interest payments on two US-dollar-denominated bonds.
The company now has a 30-day grace period to avoid an official default.
On Wednesday, Kristy Hung, a Bloomberg Intelligence analyst, wrote: “Any default would impact China’s housing market more than Evergrande’s collapse as Country Garden has four times as many projects.”
A debt crisis at Country Garden will have a far-reaching impact on China’s housing market sentiment and could significantly weaken buyer confidence on solvent private developers, she added.
Beijing Battles Deflation Amid Skyrocketing Debt Crisis
In 2022, Canada’s population grew by 1 million for the first time in its history: pic.twitter.com/R7BsJXHFhP
— unusual_whales (@unusual_whales) August 10, 2023
h/t Simian_Stacker