Tag: Country Garden

What to Know About China’s Real Estate Crisis

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Tremors in China’s real estate market are shaking the country’s economy, as well as the world, which has come to rely on China as a reliable engine of growth. Major developers are faltering as they face huge losses, struggle with mountains of debt and miss payments to lenders. A long-running building boom that propelled China’s growth has come to a halt, threatening the jobs and savings of millions of households. China’s markets have tumbled and its currency has weakened as officials take action to spur growth. Here’s what you need…

China Central Bank Cuts Key Interest Rate on Bank Lending

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China’s central bank on Monday cut the main benchmark interest rate that the country’s commercial banks use in issuing one-year bank loans, the latest in a series of steps by the government to address falling apartment prices, weak consumer spending and broad debt troubles. But the reduction, the second time in two months that the government has pushed down commercial banks’ lending rates, was smaller than expected. The modest cut was the latest sign that the government’s usual tools for addressing an economic slowdown may have lost some of their…

China Faces a Crisis in Its Real Estate Sector

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A model Chinese property developer in a sector replete with risk takers is teetering on the edge of default. Short of cash, one of China’s biggest asset managers has missed payments to investors. And billions of dollars have flowed out of the country’s stock markets. In China, August has been a dizzying ride. What started three years ago as a crackdown on risky business behavior by home builders, and then an ensuing housing slowdown, has spiraled rapidly this month. The broader economy has been threatened, and the confidence of consumers,…

Country Garden: Why Its Financial Crisis Poses a Risk to China

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Country Garden, a Chinese real estate giant, has lost billions of dollars and racked up $200 billion in unpaid bills. It’s on the hook to deliver, by one estimate, nearly one million apartments across hundreds of cities in China. The privately owned developer, founded by a farmer three decades ago, is inching closer to default. In China’s housing market, there are plenty of deadbeat developers no longer paying their bills. The possible collapse of Country Garden is one to pay attention to. The company has tried to project confidence. “One…

China’s Woes Loom Large Over the Global Markets

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What’s behind the August sell-off? Goldman Sachs economists see an end to the Fed’s hawkish policy on interest rates, predicting that the central bank will cut its prime lending rate in the second quarter of next year. But that bullish prediction is doing little to restore investors’ optimism, as concerns mount about consumer confidence and the health of global economy. China’s woes are reverberating. The country, a major engine of growth, has been rocked by a decline in trade, a slowdown in consumer spending, a crackdown on the private sector…

Country Garden’s Stock Plunges After Report of Huge Losses

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It was considered the gold standard in China’s increasingly shaky housing market. Now investors are treating Country Garden, the giant property developer, like a ticking time bomb. The company, China’s last major real estate giant to avoid default, has hinted at its financial troubles for weeks. On Thursday night, it was more direct: Country Garden said it expected a loss of up to $7.6 billion over the first six months of this year. The company’s shares, which trade in Hong Kong, took a dive on Friday, dragging its value to…

Country Garden Is Latest Property Giant in China to Run Into Trouble

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Remember China Evergrande, that Chinese property behemoth whose mountain of debt sent global markets spiraling in 2021? Its collapse later marked the start of a crisis for China’s housing market, where sales of apartments ground to a halt and developers big and small found themselves unable to pay their bills. Now, financial troubles at Country Garden, another property giant, are raising fresh concerns. It is also a flashing warning sign about China’s economy. Country Garden, the country’s biggest property developer by sales, has been pummeled in the markets twice in…