The troubled Chinese property giant Country Garden last Thursday, March 28, announced its decision to delay the publication of data on its financial results for the past year.
The mentioned decision is another signal of the extremely difficult situation in the Asian country’s real estate sector, which is facing a deep and protracted crisis.
In a filing from Country Garden, provided to the Hong Kong Stock Exchange, it is noted that the company needs additional time to collect information on financial performance due to the complexity of the work related to debt restructuring.
The fact that the specified developer was unable to report profits on time most likely means that trading in its shares will be suspended. Such measures are provided for by the rules of the Hong Kong Stock Exchange.
Currently, the amount of Country Garden’s debt is about $194 billion. Last year, the company defaulted on its debt. In February, the firm reported that it had received a petition for liquidation in Hong Kong from a creditor due to non-payment of a loan for $204 million.
Currently, China’s real estate sector is experiencing what can be described as excessive instability. Against the background of this state of affairs, the activities of the Country Garden are significantly hampered. In February, the company’s contracted sales decreased by 85%. This is the biggest drop in the mentioned indicator in the last seven years.
Last year, Country Garden and its joint ventures delivered over more than 600,000 housing units. These facilities were built in 249 cities in China. The relevant information was made public by Country Garden.
