Its Hong Kong-listed shares slumped 4.1% on Monday. Moody's expects more China real estate developers to default on debt this year half of the 50 names that the agency covers are under review for downgrade, or have a negative outlook. State-owned China Jinmao (0817.HK) said in a filing on Sunday it expected to post a 80% decline in net profit in the first half of this year, due to a drop in gross profit margin in some projects and a decrease in land development revenue. Wong said the sector's impact on the economy has reached a "critical moment" and that regulators should implement more policies including further cutting interest rates and reserve ratios.Ĭhina's economy grew at a frail pace in the second quarter as demand weakened at home and abroad, prompting top leaders to promise further policy support and analysts to downgrade their growth forecasts for the year. ![]() "The problems in the sector have been brewing for a long time, it wiped off the wealth effect among investors and no one wanted to buy property now," said Dickie Wong, executive director at Kingston Securities. Its woes are adding to spillover concerns across a property market already grappling with weak buyer demand. The stock has lost 50% so far this month.Ĭountry Garden's offshore bonds also eased, with a few trading at the lower end of 6 cents on the dollar earlier. The developer's shares dived 18.4% to HK$0.8 on Monday, dragging down the Hang Seng Mainland Properties Index (.HSMPI) which dropped 3.7%. The suspension of its onshore bonds followed a report by Chinese media outlet Yicai on Friday that the company was heading for a debt restructuring, after it missed payments of two dollar bond coupons due on Aug. In September alone, Country Garden may need to repay more than 9 billion yuan ($1.25 billion) worth of onshore bonds, according to Reuters' calculations. In separate filings during the weekend, the developer said it would suspend trading in 11 of its onshore bonds from Monday, a move traders said usually signals plans to seek repayment extensions. 2, with an outstanding of 3.9 billion yuan, by three years in seven instalments.Ĭountry Garden declined to comment. ![]() ![]() A source with direct knowledge said on Monday that Country Garden has proposed to creditors to extend repayment for an onshore private bond due Sept.
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