China’s government is trying to reassure jittery homebuyers after a major real estate developer missed a payment on its multibillion-dollar debt, reviving fears about the industry’s shaky finances and their impact on the struggling Chinese economy.
A government spokesperson tried to reassure the public and financial markets, saying conditions are improving and regulators are getting debt under control.
The homebuyers, who sat under tent in 31 C heat, declined to talk to a reporter but a security guard said their complaint stemmed from a Country Garden project in Malaysia. Real estate propelled China’s economic boom, but developers borrowed heavily as they turned cities into forests of apartment and office towers. That helped to push total corporate, government and household debt to the equivalent of more than 300% of annual economic output, unusually high for a middle-income country.
Country Garden’s debt struggle might “drive potential homebuyers away from privately owned developers,” Moody’s Investors Service said in a report. That would “weaken effects of any potential supportive measures by the government to stabilize property sales.” Country Garden was founded in 1992 by Yang Guoqiang, a former farmer and construction worker. Yang handed over his shares in 2005 to his 25-year-old daughter, Yang Huiyan. She was ranked the richest woman in Asia by Forbes magazine with a net worth of $11 billion.
Country Garden reported 1.7 trillion yuan versus 1.4 trillion yuan of liabilities at the end of 2022. The business news magazine Caixin cited an unidentified source who said the developer might have an additional 200 billion yuan in debt. Country Garden had outstanding bonds and asset-backed securities of 104 billion yuan , including 78 billion yuan of bonds sold abroad, according to Caixin. It said bonds worth 7.3 billion yuan will mature in September.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China appears to be building an airstrip on a disputed South China Sea islandChina appears to be constructing an airstrip on a disputed South China Sea island that is also claimed by Vietnam and Taiwan, according to satellite photos analyzed by The Associated Press.
Read more »
Bullish USD/CNH: High-Flying US Yields, Worsening Chinese DataUSD receives support from rising US treasury yields while Chinese fundamental data continues to slide. Potential for benchmark rates cuts next week (LPR)
Read more »
Republican lawmaker says Chinese hackers breached his emailsSuspected Chinese hackers breached the personal and campaign email accounts of a Republican congressman who has been critical of the Chinese govern...
Read more »
Stock market today: Wall Street drops as faltering Chinese economy sets off global slideA sharp drop for Wall Street capped a day of declines worldwide after discouraging data on China raised worries about the global economy.
Read more »
Wall Street drops as faltering Chinese economy sets off global slideA sharp drop for Wall Street capped a day of declines worldwide after discouraging data on China raised worries about the global economy.
Read more »
Tesla faces Chinese heat over Sentry ModeTesla is facing mounting pressure from China as national security and privacy become major issues for the country.
Read more »