Posted on 08/31/2023 1:18:37 PM PDT by dynachrome
China's largest private property developer warned on Wednesday of default risks if its financial performance continues to deteriorate, and said it "felt deeply remorseful" for its record loss in the first half.
Country Garden (2007.HK) posted a net loss between January and June of 48.9 billion yuan ($6.72 billion), versus a 6.7 billion yuan net loss in the second half of 2022 and a 612 million yuan net profit in the first half of 2022.
The results come as Chinese authorities take steps to revive the troubled property market, which accounts for roughly a quarter of the economy. The sector's woes have raised concerns that it could have a destabilising impact on an economy already weakened by rising unemployment and falling demand.
The property sector has seen many company defaults since late-2021, resulting in uncompleted homes and unpaid suppliers and creditors.
The liquidity stress in Country Garden became public this month after it missed two dollar-coupon payments - which the developer confirmed for the first time on Wednesday - and sought to extend an onshore private bond repayment, deepening contagion fears.
(Excerpt) Read more at reuters.com ...
BTT
I dumped all my Chinese stocks. You can’t trust them.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.