The company also said it may default on its debt, underscoring how China’s deepening real estate slump has battered one of its former property giants.
| Country Garden posted a record first-half loss of almost $US7 billion and warned it may default on its debt, underscoring how China’s deepening real estate slump has battered one of its former property giants.
The housing slump adds to wider concerns about the world’s second-largest economy, where authorities remain reluctant to adopt stronger stimulus to reverse the slowdown. Signs of contagion from the housing woes have grown in recent weeks, from missed payments by one of China’s biggest shadow banks to a bond rout among Hong Kong developers.Country Garden said it continues to negotiate with bond investors and banks to extend maturities to keep it afloat.
The developer’s results reflect the steep decline in China’s housing market. The Foshan-based company posted a net loss of 48.9 billion yuan in the six months ended June 30, compared with a profit of 612 million yuan a year earlier. Country Garden acknowledged that it didn’t adopt timely measures to deal with the slowdown, and failed to recognise the risks of its heavy reliance and lower-tier property markets.
Total debts decreased to approximately 257.9 billion yuan, from 271.3 billion yuan as of December 31.Cash balance shrank to 130.6 billion yuan, including 29.5 billion yuan in restricted form
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