Chinese property giant Country Garden warns of $7.6 billion loss as it nears default | CNN Business

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One of China’s biggest property developers says it has burned through up to $7.6 billion in the first half of the year, compounding the crisis coursing through the country’s embattled real estate sector

Country Garden warned investors in a Hong Kong stock exchange filing Thursday that it would likely record a loss of 45 billion to 55 billion Chinese yuan for the six months through June. That compares with a profit of approximately 1.9 billion yuan for the same time last year. The disclosure lays bare the financial woes currently facing Country Garden, a massive builder of hundreds of thousands of homes annually across China.

The downgrade reflects Country Garden’s cash flow problems, “in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding,” Kaven Tsang, a Moody’s senior vice president, said in a report. “The negative outlook reflects the uncertainty over Country Garden’s ability to service its debt obligations, including coupon payments, in a timely manner over the next [six to] 12 months,” he added.

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