{"id":2021088,"date":"2023-09-03T20:48:01","date_gmt":"2023-09-04T00:48:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-country-garden-debt-deal-focus-shifts-to-china-property-recovery-prospects\/"},"modified":"2023-09-03T20:50:49","modified_gmt":"2023-09-04T00:50:49","slug":"after-country-garden-debt-deal-focus-shifts-to-china-property-recovery-prospects","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-country-garden-debt-deal-focus-shifts-to-china-property-recovery-prospects\/","title":{"rendered":"After Country Garden&#8217;s debt deal, attention turns to China&#8217;s property recovery prospects."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/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%2Fafter-country-garden-debt-deal-focus-shifts-to-china-property-recovery-prospects%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=2021088&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<p>By Xie Yu and Carolina\u2064 Mandl<\/p>\n<p>HONG KONG\/NEW YORK (Reuters) \u2013    \u2062 Country \u2064Garden\u2019s deal with creditors \u2064for an extension on onshore debt payments worth 3.9 billion \u200byuan ($537 million) has brought the developer and \u200dChina\u2019s crisis-ridden property sector some much-needed respite.<\/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>But while investors in the company and China economy-watchers \u2063alike may be heaving sighs of relief, it remains to be seen\u2062 whether a raft of\u200d government stimulus measures will soon help revive demand and\u200c ease the sector\u2019s cash squeeze.<\/p>\n<p>The financial woes of China\u2019s top \u200dprivate developer have only further highlighted the fragile state of\u200b the country\u2019s real estate\u200c industry which accounts for roughly a\u2062 quarter of the \u200ceconomy and has been in dire debt straits \u2064since 2021.<\/p>\n<p>Considered financially\u2064 sound compared \u200bto peers, Country\u200b Garden had not \u2063missed a debt\u200c payment \u200bobligation, onshore or offshore, \u2062until coupon \u200cpayments on dollar bonds last month \u2063after <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-country-garden-debt-deal-focus-shifts-to-china-property-recovery-prospects\/\" title=\"After Country Garden's debt deal, attention turns to China's property recovery prospects.\">slowing home demand hurt<\/a> its cash\u2064 flow.<\/p>\n<p>Since then, \u200dChinese authorities have rolled out a number of measures, the most significant being the lowering of\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-bank-shares-fall-on-existing-mortgages-rate-cut-concerns\/\" title=\"Chinese bank shares drop due to worries about a rate cut on existing mortgages.\">existing mortgage rates<\/a> and preferential loans for first-home purchases in big cities.<\/p>\n<p>\u201cWe will see in the coming months if \u200dthese supply-side measures are able to revive homebuying \u2063demand, which is crucial for the fate of\u2063 China\u2019s developers and their ability to handle their upcoming debt\u200b maturities,\u201d said Tara Hariharan, managing \u200ddirector at global macro hedge fund NWI Management in New York. <\/p>\n<p>She \u2064noted that Country Garden \u200band other developers face payments for sizeable maturities this year.<\/p>\n<p>In the deal reached after a vote on\u200c its proposal late on Friday, Country Garden is now allowed to repay the onshore\u2063 debt in instalments over\u200d three years, instead of meeting its obligations by Sept. 2.<\/p>\n<p>It also has another immediate, albeit \u2063much smaller, \u2062debt payment challenge \u2013 the ending of a grace period on Tuesday for last month\u2019s <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.\">missed coupon \u200cpayments worth<\/a> a total of $22.5 million\u200d on \u2064two offshore dollar \u200cbonds.<\/p>\n<p>That Country Garden\u200d was able \u2064to avert an onshore default has raised \u200chopes it will be \u2062able to\u2063 make the \u2063interest payments on those bonds, \u2062said three of its offshore creditors, \u2064declining to be named as they were not authorised to speak to the media.<\/p>\n<p>After that, \u2064the creditors said they expect Country Garden to enter into restructuring negotiations for its entire offshore debt to avoid a \u201chard default\u201d, similar to what it did with\u200d the onshore creditors.<\/p>\n<p>Country Garden did not immediately respond\u2064 to a request for comment.<\/p>\n<p>While China property industry may have gained some respite, some market participants said they plan to stay away from the  sector until there is a rebound in home sales.<\/p>\n<p>\u201cWe sold all\u200b our Chinese real estate stocks \u2062in April 2020\u200d and haven\u2019t bought back \u2064any since,\u201d said \u200dQi Wang, \u2062CEO of Hong Kong-based\u2064 MegaTrust Investment. \u201cWouldn\u2019t touch the private\u2063 developers with a ten-foot pole right now.\u201d<\/p>\n<p>($1 = 7.2606 Chinese yuan)<\/p>\n<\/p>\n<p>  (Reporting by Xie Yu in Hong Kong, Carolina Mandl in New York and Joe\u2063 Cash in Beijing; Writing by\u200c Sumeet Chatterjee; Editing by Edwina Gibbs)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/after-country-garden-debt\/attachment\/file-photo-the-company-logo-of-chinese-developer-country-garden-6\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>This week&#8217;s major headlines<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Mark Mix fights Big Labor&#8217;s Pro Act<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Drone \u200cattacks on Russian soil<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Joe Biden celebrates US \u200cJobs Report<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Gemini rallies creditors for more\u2063 money<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Arm Holdings\u200b targets $50-55 billion valuation<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Meta Platforms considers paid versions for EU users<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Dell \u2062Technologies raises \u200dfull-year financial forecasts<\/h3>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>a sigh of relief, the challenges facing the property sector in China are far from over. Country Garden&#8217;s agreement with creditors to extend onshore debt payments worth 3.9 billion yuan ($537 million) provides temporary relief, but the industry still faces significant hurdles.<\/p>\n","protected":false},"author":66,"featured_media":2021089,"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-2021088","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\/2021088","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=2021088"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021088\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2021089"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2021088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2021088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2021088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}