The troubled Chinese real estate group Country Garden has stopped trading in some of its bonds. Country Garden’s 11 onshore bonds outstanding in the domestic market are to be suspended from trading indefinitely from Monday, according to announcements by the company on the Shenzhen Stock Exchange published on Saturday.
The impending difficulties of Country Garden, one of the largest private real estate developers in the country, have been fueling concerns that the industry crisis will worsen for some time. At the center of this is the real estate developer China Evergrande, which is struggling with its creditors to reduce its mountain of debt after suffering high losses. The former star of the Chinese housing market got into trouble after the real estate bubble burst.
Country Garden stocks and bonds sold off on Friday after the financial newspaper Yicai had reported that the company was also in the process of restructuring its debt. Country Garden, which specializes in real estate in smaller cities, was in debt at the equivalent of $194 billion at the turn of the year and has announced a loss of up to 55 billion yuan ($7.6 billion) for the first half of the year. In early August, Country Garden owed lenders interest on two-dollar bonds.