China's Country Garden suspends trading of onshore bonds amid talk of debt restructuring | CNN Business

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Country Garden, one of China’s top property developers, suspended trading in 11 of its onshore bonds

Shares in Country Garden plummeted 16% on Monday to a new record low, leading the losses among the Hang Seng Index constituents, as investors pondered whether the property giant’s woes could further weigh on an already sluggish recovery in the world’s second largest economy. Those shares have lost a third of their value since last Tuesday, when reports surfaced that the real estate firm missed interest payments on two dollar bonds.

Country Garden acknowledged last Thursday that it was facing a temporary “liquidity pressure” due to deteriorating sales and a difficult refinancing environment. This was the “biggest difficulty” it had found itself in since its establishment in 1992, it said, adding that it was committed to carrying out a “self-rescue” by all necessary means. Its problems have damaged investors’ confidence in the real estate industry. Shares in its rivals Longfor Group\n \n and China Resources Land\n \n fell 1.

 

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