China's real estate market is sluggish, and the operation of China ’s sixth largest developer Country Garden has been reviewed by the sales plan.
According to Bloomberg reported on August 8, the proportion of short positions accounted for more than 8%of the recorded stocks. Country Garden and its property management companies were the most empty component stocks in the Hang Seng Index.
Country Garden's stock price fell 2.3%on Tuesday, fell for the fourth consecutive day.
Country Garden cancels the shares last week, people are increasingly worried about whether it can repay USD bonds that expire next year.Analysts from Moody's to JP Morgan have lowered the company's stock and bond rating.Country Garden's contract sales last month fell 60%year -on -year to 12 billion yuan (about S $ 2.25 billion). Analysts pointed out that the company's business in low -line cities is relatively large, so it is easy to fall into further difficulties.
Country Garden stated in a Bloomberg statement, "Affected by the continued deterioration of recent sales and the re -financing environment, the company's bookkeeping can continue to decrease, and the company's book can continue to decrease.Sexual flow pressure. "The company said that it is still actively optimizing fund arrangements and strive to protect the legitimate rights and interests of creditors.
People familiar with the matter said that a subsidiary of Country Garden completed the principal and interest payment of a medium -term bill in advance.The bill holders have all chosen to be sold, and the principal and interest rates have paid a total of RMB 838 million in this issue.
The stock price of this headquarters in Foshan has fallen by more than 50%this year. Investors are increasingly doubting whether Country Garden can survive the default wave of the industry in early 2021.
Patrick Wong, a Bloomberg industry research analyst, believes that more and more investors bet on the liquidity of Country Garden to lead to the company's failure.Country Garden has a large number of projects, and any default will seriously affect the overall real estate market emotions and crack down on other developers.
