Country Garden stock tumbled 18% in Hong Kong trading after it said trading for several onshore bonds would be suspended and Morgan Stanley downgraded the...
A grim assessment of Country Garden Holdings Co. Ltd. from Morgan Stanley added to pressure on the troubled Chinese property developer on Monday.
Country Garden’s 2007 stock tumbled 18% to a record low in Hong Kong trading, the day after it announced to the Hong Kong regulator that trading for at least 10 onshore bonds would be suspended. Shares have lost 46% for August so far, raising fresh concerns over China’s highly indebted real-estate sector. Other real-estate stocks also fell, such as China Jinmao Holdings 817 .
In a note to clients, also dated Sunday, Morgan Stanley analysts slashed Country Garden shares to underweight from equal-weight, or neutral, and cut their share price target by 69% from HK$2.40 to HK$0.75. “Considering its large exposure in low-tier cities, we believe it could take years for Country Garden to recover from its liquidity challenges,” they added. Avoiding default will depend on more support from regulators, while more sales improvement and policy easing could ease liquidity concerns, but both scenarios were “more challenging,” said the bank.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China's Country Garden suspends trading of onshore bonds amid talk of debt restructuring | CNN BusinessCountry Garden, one of China’s top property developers, suspended trading in 11 of its onshore bonds on Monday, adding to speculation the company may be preparing to restructure its debt as it struggles to raise enough cash in time to avoid default.
Read more »
China’s Country Garden, Zhongrong Trust renew debt market fearsChina’s biggest private property developer Country Garden suspends trading of its 11 onshore bonds from Monday, according to filings to the Shenzhen S
Read more »
Country Garden shares slump to record low after onshore bond trading haltedShares 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.
Read more »
Nassau County to offer disaster training for ages 11 to 18Calling on all parents with children between the ages of 11-18. Disaster training will be offered by the county.
Read more »
18 Great Restaurants to Try Near UNLVFrom sandwiches that fuel study sessions to after-class happy hours, here’s where to eat near UNLV.
Read more »