After Country Garden debt deal, focus shifts to China property recovery prospects
HONG KONG/NEW YORK - Country Garden's deal with creditors for an extension on onshore debt payments worth 3.9 billion yuan has brought the developer and China's crisis-ridden property sector some much-needed respite.
The financial woes of China's top private developer have only further highlighted the fragile state of the country's real estate industry which accounts for roughly a quarter of the economy and has been in dire debt straits since 2021. Since then, Chinese authorities have rolled out a number of measures, the most significant being the lowering of existing mortgage rates and preferential loans for first-home purchases in big cities.
It also has another immediate, albeit much smaller, debt payment challenge - the ending of a grace period on Tuesday for last month's missed coupon payments worth a total of $22.5 million on two offshore dollar bonds.
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