China: Developer Country Garden reports $6.7 billion loss amid fears of another Evergrande

Source: The Guardian [UK]

“Embattled Chinese developer Country Garden reported a 48.9bn yuan ($6.7bn) loss for the first half of the year in a stock exchange filing on Wednesday, adding to worries of a potentially catastrophic default. Its tenuous state has sparked fears of a collapse that could have far-reaching consequences for the Chinese financial system two years after the fall of Evergrande. Country Garden, which was China’s largest real estate firm last year, has four times as many building projects underway as Evergrande. When the latter halted construction projects in recent times it infuriated home buyers, who held demonstrations and stopped making mortgage payments in protest. Evergrande, the world’s most indebted property firm with liabilities of $328bn, has lost more than 99% of its share market value over the past three years.” (08/31/23)