The leading Chinese real estate company leader Country Garden, which is deeply trapped in the financial crisis, announced that 11 domestic corporate bonds have been suspended from Monday, which means that the company's debt reorganization is already on the board.
Scholars of interviewees believe that it is different from the "trillion -level" real estate enterprise Evergrande Group that is also in a financial crisis. Most of the Country Garden projects are concentrated in third- and fourth -tier cities. The housing markets in these cities are lower.It makes it more difficult to see the exhibition potential from these real estate, and the prospects of reorganization are not optimistic.
Country Garden issued an announcement on the Shenzhen and Shanghai Stock Exchange on Saturday (August 12). The corporate bonds issued by its nine to 2022 will be suspended on Monday (August 14).EssenceThe Guangdong Tengyue Construction Project under Country Garden also announced a suspension of a bond.Local media said that a private equity bond in Country Garden will also suspend transactions.
The total amount of the suspension of the bond is about 15.7 billion yuan. This announcement is not included in overseas bonds
According to surging news statistics, the balance of 11 bonds that was suspended was about 15.702 billion yuan (RMB, the same below, about S $ 2.9 billion).Among them, there are three bonds that are about to expire in September, with a total balance of more than 7.3 billion yuan.The announcement did not include the company's bonds outside China.
Country Garden stated in the announcement that the company will communicate with the people and consider taking various debt management measures to ensure the company's long -term development in the future and preserve the value and maintain interests for the people.
The news about Country Garden's falling into the financial crisis continued last week.The company confirmed that it was rumored last Tuesday (August 8) that due to the flow of funds, it was unable to pay two expired US dollar debt interest on the edge of breach of contract.Country Garden also announced two days later that the company is expected to have a loss of up to 55 billion yuan in the first half of the year due to factors such as the decline in sales of the real estate industry.
As one of the leading real estate companies in China, Country Garden is another large real estate developer in China's debt crisis after Evergrande Group.As of the end of 2022, Evergrande's total liabilities were 2.44 trillion yuan, and Country Garden was 1.43 trillion yuan.
Song Ding, a researcher at China (Shenzhen) Comprehensive Development Research Institute, pointed out in the Lianhe Morning Post that Country Garden seems to play the role of "special students" in the industry for a long time.In the third and fourth -tier cities, a large number of land and building buildings have achieved a series of bright results through differentiated strategies.
But Cheng also Xiao He is also Xiao He.Song Ding explained that there are two -thirds of the projects in Country Garden concentrated in third- and fourth -tier cities; when the entire real estate situation reverses, the property market in these cities will be the first to fall into the downturn, resulting in a significant slowdown in the company's overall sales, the financial conditions are brightRed light.
Even if Country Garden has launched debt reorganization, Song Ding believes that the prospect of reorganization is not optimistic.He said that the key to the success or failure of the reorganization is that the successor must agree with the future development potential of their real estate.If no one is willing to be the receiver of these precipitated assets, it will be difficult to reorganize.
In order to boost the real estate market, Chinese officials have continued to convey positive signals and introduce support policies in the past month to promote real estate to recover in the second half of the year.
Song Ding judged that although Country Garden's dilemma did not reverse the general trend of real estate recovery, this crisis may weaken the recovery momentum and increase the shadow of the downturn in the real estate market.
He predicts that the debt dilemma of Country Garden will form a chain reaction, which affects hundreds of cities covered by the company's business, leading to varying degrees of governments, banks, creditors and buyers.The negative effects will also penetrate the fifty or 60 industries upstream and downstream of real estate, and the economy of the city where the project is located will also be affected.
As for Country Garden's overseas business, Song Ding believes that due to the company's foreign debt, the debt crisis will directly cause the capital chain to be blocked, which will impact on those constructions that have not been sold or delivered.
