Chinese House Property Stocks at 14-Year Low
Chinese property stocks face their most difficult challenge in 14-years. Sector is in a state of stress because home sales are down and debt worries among developers have increased. We examine the reasons for the current crisis as well as its implications for China’s housing market.
Country Garden Holdings: The Struggles of Country Garden Holdings
One of the most critical developments in this ongoing crisis is the precarious situation of Country Garden Holdings Co., formerly China’s top builder. The company must race against the clock in order to make a payment deadline, and avoid its first ever default on a dollar bond. The stakes are very high and the result of this race could have a wide-ranging impact.
Country Garden has to pay a coupon of $15.4m on a dollar-bond. The grace period is October 17-18. A default could occur if the payment isn’t made within this grace period. However, it’s worth noting that the company still needs to clarify which specific day marks the end of this grace period, as the initial missed deadline was on Sunday, September 17.
Evergrande’s Looming Asset Liquidation
Once unimaginable, the once impossible has now become…