On Tuesday, Chinese property giant Country Garden Holdings disclosed in its filings to the Hong Kong Stock Exchange that the company has failed to make a due-to-Monday offshore debt payment of 470 million Hong Kong dollars (48,98 million GBP), further highlighting that they might not be able to pay off all of Country Garden’s current debt.
Country Garden’s shares fell by 10% in Hong Kong overnight.
Country Garden avoided default in September by getting an extension on offshore private bond debt payments. Nonetheless, a sector-wide crisis in China has been hurting Country Garden’s liquidity position and heightening the risk of default.
In its filings with the Hong Kong Stock Exchange, the company further stated that, amid the crisis, they are uncertain they would be able to meet other payments due in the coming periods.
Many Chinese property giants have been defaulting as the result of an inability to pay off debt.
Evergrande, another major Chinese property company, currently has an outstanding debt of $31.7 billion in bonds, repurchases, and collateral obligations. Their shares also fell overnight.