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Country Garden’s sales remain at deflated level as China’s property crisis forces developer Nan Hai to delist
- Contracted sales in October reached 6.31 billion yuan (US$865 million), 2 per cent above September’s 6.17 billion yuan, according to a filing
- Beijing-headquartered Nan Hai, under a trading suspension since April 2022, will delist in Hong Kong as of November 16
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Indebted Chinese developer Country Garden on Friday reported that its October sales remained near a punishing low established in September amid a collapse of buyer confidence that has pummelled the entire property market.
Contracted sales in October reached 6.31 billion yuan (US$865 million), according to a filing with the Hong Kong stock exchange. That is 2 per cent higher than September’s 6.17 billion yuan, which was the lowest point of the year for the company that was once mainland China’s largest private property developer.
The depressed sales could pose a challenge to Country Garden’s efforts to restructure its offshore debt by the end of the year or early next year. The developer hopes to start formal negotiations with offshore bondholders by February or March next year, according to a Reuters report.
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Country Garden is deemed to be in default after missing a coupon payment of US$15.4 million on a dollar-denominated bond in October.
04:49
Anger mounts as China's property debt crisis leaves flats unfinished
Anger mounts as China's property debt crisis leaves flats unfinished
Country Garden’s sales trend this year reflects the developer’s fortunes as well as those of the wider property market in the world’s second-largest economy.
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