Country Garden shares slump to record low after onshore bond trading halted
2023.08.13 22:38
© Reuters. FILE PHOTO: The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023. REUTERS/Aly Song/File Photo
HONG KONG (Reuters) -Shares of China’s Country Garden plunged more than 12% on Monday morning after the real estate company suspended trading in 11 of its onshore bonds from Monday.
The stock hit a new low of HK$0.86, following reports on Friday the company was heading for a debt restructuring that added to concerns about the deteriorating outlook in the property sector.
Markets are jittery as more developers default on bond payments amid no signs of stronger support measures from Beijing.
Country Garden last week missed payments of two dollar bond coupons due on Aug. 6 totalling $22.5 million, confirming market fears that the developer was slipping into repayment troubles.
In separate filings during the weekend, the firm said the resumption of trading of its onshore bonds would be determined at a later date.
