{"id":2020111,"date":"2023-09-02T08:18:02","date_gmt":"2023-09-02T12:18:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/country-garden-wins-bond-extension-in-relief-for-chinas-property-sector\/"},"modified":"2023-09-02T08:20:45","modified_gmt":"2023-09-02T12:20:45","slug":"country-garden-wins-bond-extension-in-relief-for-chinas-property-sector","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/country-garden-wins-bond-extension-in-relief-for-chinas-property-sector\/","title":{"rendered":"Country Garden secures bond extension, providing relief for China&#8217;s property sector."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcountry-garden-wins-bond-extension-in-relief-for-chinas-property-sector%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2020111&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Country Garden Secures\u200c Approval for\u2063 Bond Payment Extension<\/h2>\n<p>By Xie Yu, Kevin Huang and Li Gu<\/p>\n<p>HONG KONG\/BEJING (Reuters) &#8211; Country Garden has won approval from \u200cits creditors to extend payments for an\u2063 onshore private \u2062bond, according to sources and\u200d a document seen by Reuters, in a major relief for the embattled Chinese developer as well as\u200d the crisis-hit property sector.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Country Garden was seeking approval from its creditors to \u2064extend the maturity on a 3.9 billion yuan ($540 million) onshore private bond in a vote that ended on Friday night.<\/p>\n<p>An \u2064unprecedented liquidity crisis in China\u2019s vast property sector is a major risk to a sputtering post-COVID recovery in the world\u2019s second-biggest economy, which has rattled global markets.<\/p>\n<p>Country Garden debt payment extension buys time for China\u2019s largest private developer\u2063 to avoid default, and is good \u2062news for financial markets and the Chinese government, which has announced a raft \u2064of measures to\u2062 support the property sector.<\/p>\n<p>The extension means the \u200cdeveloper can repay the debt \u200bin \u2062instalments over three years, instead \u200bof meeting its obligations by\u2062 Saturday.\u2064 The bond is not publicly traded.<\/p>\n<p>In Friday\u2019s vote, 56.08% of participating Country\u200c Garden \u2063onshore creditors approved \u200dthe extension, 43.64% opposed and 0.28% abstained, an official \u200bdocument shared with\u2063 bondholders showed.<\/p>\n<p>Country Garden did not immediately respond to a request for comment. The \u2064sources, who \u2062have direct knowledge of the matter, asked \u2063not to be named as they were not authorised to speak to the media.<\/p>\n<p>China\u2019s property sector, which accounts for roughly a quarter of the economy, has lurched from one crisis to another since 2021 \u200dafter the authorities cracked down on \u2062developers\u2019 debt-fuelled building boom.<\/p>\n<p>As\u2062 Country Garden\u2019s financial woes spiralled over the past month, Beijing\u200b has rolled out a string \u200dof support measures including cutting mortgage rates and removing some curbs on home purchases.<\/p>\n<p>The authorities are set to take further action, including relaxing home-purchase \u200crestrictions as they scramble to tackle a\u2062 deepening crisis in its massive debt-riddled property sector, Reuters reported on Friday.<\/p>\n<p>Country Garden\u2019s reprieve may give onshore bondholders some relief, but there\u2064 is still a\u200c long way to go as China tries to defuse risks in the crisis-hit property sector\u2062 and\u200c bolster the \u200ceconomy, analysts said.<\/p>\n<p>\u201cSales\u2063 in the biggest cities in China may see meaningful improvement over the next couple of months as Beijing cuts mortgage rates and makes them\u200d more\u200b easily available to buyers,\u201d said Guotai Junan International\u2019s chief economist Zhou Hao.<\/p>\n<p>\u201cHowever, how the improvement will trickle down to help the cash flow of developers remains to be seen. Plus different \u2064types of developers are\u2063 likely to benefit \u200dfrom it very unevenly. Those with \u2063more projects in the first-tier cities may benefit first.\u201d<\/p>\n<p>The \u200bslump in the Chinese property\u2064 market is driven by more fundamental factors than the cost of borrowing, including broader debt worries in\u2063 the economy, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/country-garden-wins-bond-extension-in-relief-for-chinas-property-sector\/\" title=\"Country Garden secures bond extension, providing relief for China's property sector.\">white-collar workers taking \u200dpay\u200c cuts<\/a> and a demographic downturn, analysts say.<\/p>\n<p>DEFAULT RISK<\/p>\n<p>Until this year Country\u200c Garden was the largest\u200b Chinese developer by sales. The company was considered financially sound compared\u200d with peers like China Evergrande Group, which\u200b defaulted on its debt in 2021.<\/p>\n<p>While Country \u2063Garden\u2019s liabilities are only\u200c 59% of Evergrande\u2019s, it has \u200c3,103 projects across China, compared with around 800 for Evergrande \u2013 making the company matter \u200bto \u200csystemic stability.<\/p>\n<p>A default by Country Garden would have exacerbated the real estate crisis and put \u2062more\u2063 strain on its onshore lenders.<\/p>\n<p>The developer\u2019s financial woes became public last month after it missed two dollar-coupon payments totalling\u2062 $22.5 million, raising fears that\u2062 the country\u2019s deepening \u2064property debt\u200b crisis\u200c would spill \u2063over to the broader financial sector.<\/p>\n<p>Country Garden still faces another major \u200cchallenge next week, when the grace period ends for last month\u2019s missed coupon \u2063payments worth a total of $22.5 million \u200don the two offshore \u200ddollar bonds.<\/p>\n<p>The developer also has dollar coupon payments on \u200bits other \u2063offshore bonds coming due each month for the rest\u2063 of 2023. And it has onshore bond payments \u200ctotalling 12.6 billion yuan by the end of the year, according to CreditSights.<\/p>\n<p>Moody\u2019s slashed \u200dCountry Garden\u2019s credit \u200brating by \u200cthree notches to Ca\u2062 from Caa1 on\u200d Thursday due to worries it could be on the brink of default. It said the firm was facing tight liquidity and recovery prospects for bondholders could\u2064 be weak.<\/p>\n<p>Country Garden warned on Wednesday\u2062 of \u200bdefault risks if its financial performance continued\u2064 to deteriorate, and \u2064said it \u201cfelt deeply remorseful\u201d for its record\u200b loss in the first half.<\/p>\n<p>  (Reporting by Xie \u200cYu\u200d in Hong Kong, Kevin \u200bHuang and Li Gu in Shanghai; Editing by Sumeet Chatterjee and William Mallard)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/country-garden-wins-bond\/attachment\/file-photo-construction-site-of-residential-buildings-by-chinese-developer\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Other News:<\/h3>\n<ul>\n<li>Joe Biden celebrates the US Jobs Report, hides Hunter\u2019s job reports and delivered some \u2062nice gas prices just in time for Labor \u2064Day \u200cWeekend.<\/li>\n<li>Adam\u2064 Brandon \u2062says his organization, FreedomWorks, is giving Conservative lawmakers on Capitol Hill a backbone to cut spending when Congress gets back to work \u200din just a few days.<\/li>\n<li>CNN publishes a report denouncing One America News for running Russian propaganda over \u2063our reporting on the Syrian\u2063 terrorist \u200bgroup\u200d \u201cThe White Helmets.\u201d<\/li>\n<li>West Virginia Attorney General Patrick Morrisey says moving President \u200dTrump\u2019s J6\u2064 trial out of D.C. to his state would be\u200b a win for all parties.<\/li>\n<li>(Reuters) \u2013 Cryptocurrency exchange\u200c Gemini \u2062is trying to rally other creditors behind a plan to wring more\u2063 money out of bankrupt \u200dcrypto\u2026<\/li>\n<li>By Echo Wang NEW YORK (Reuters) \u2013 Arm Holdings Ltd is targeting a valuation between $50 billion to \u200d$55 billion for its\u2026<\/li>\n<li>(Reuters) -Meta Platforms is considering paid versions of Facebook and Instagram with no\u200d advertisements for users residing in the European Union (EU)\u2026<\/li>\n<li>(Reuters)\u2063 \u2013 Shares in Dell Technologies Inc rose 22.2% and hit a record high on\u200b Friday after it raised full-year financial forecasts\u2026<\/li>\n<\/ul><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Country Garden, a troubled Chinese developer, has received approval from its creditors to extend payments for an onshore private bond. This news brings significant relief to both the company and the crisis-ridden property sector.<\/p>\n","protected":false},"author":66,"featured_media":2020112,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2020111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2020111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2020111"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2020111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2020112"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2020111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2020111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2020111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}