Country Garden's deal with creditors for an extension on onshore debt payments worth 3.9 billion yuan ($537 million) has brought the developer and China's crisis-ridden property sector some much-needed respite.
for an extension on onshore debt payments worth 3.9 billion yuan has brought the developer and China's crisis-ridden property sector some much-needed respite.
The financial woes of China's top private developer have only further highlighted the fragile state of the country's real estate industry which accounts for roughly a quarter of the economy and has been in dire debt straits since 2021. "We will see in the coming months if these supply-side measures are able to revive homebuying demand, which is crucial for the fate of China's developers and their ability to handle their upcoming debt maturities," said Tara Hariharan, managing director at global macro hedge fund NWI Management in New York.
After that, the creditors said they expect Country Garden to enter into restructuring negotiations for its entire offshore debt to avoid a "hard default", similar to what it did with the onshore creditors.While China property industry may have gained some respite, some market participants said they plan to stay away from the sector until there is a rebound in home sales.
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