The warnings highlight how China’s deepening real estate crisis has battered one of its property giants. Once the country’s biggest developer by sales, Country Garden is in a debt spiral that may be worse than rival China Evergrande Group’s because it has four times as many property projects.
Country Garden Holdings warned that it may default on its debt and raised concerns about staying in business after the embattled Chinese developer posted a record first-half loss of almost US$7 billion.
The Foshan-based company said that if its financial performance continues to deteriorate, the group might not be able to meet its debt obligations, “which may result in default,” according to a filing Wednesday. It also cited “material uncertainties” that may cast “significant doubt on the group’s ability to continue as a going concern.”
