On Thursday, a half-dozen homebuyers sat outside a Country Garden development under construction in Beijing beside a sign that said they have been "fighting for their rights" for 97 days. "Housing consumption and housing enterprises' willingness to invest are expected to gradually improve." Policy changes "will help boost market confidence," Fu said at a news conference. "The risks of housing enterprises are expected to be gradually resolved," said Fu Linghui of the National Bureau of Statistics. It has a 30-day grace period before it would be declared in default.Ī government spokesperson tried to reassure the public and financial markets, saying conditions are improving and regulators are getting debt under control. missed two payments totaling $22.5 million due to buyers of dollar-denominated bonds on Aug.
A central bank official said in March that financing conditions have "improved significantly."įinancial markets were rattled when Country Garden Holdings Co. Fears of a possible Evergrande default in 2021 rattled global markets, but they eased after the Chinese central bank said its problems were contained and Beijing would keep credit markets functioning. The Country Garden episode has echoes of Evergrande Group, which is trying to restructure more than $340 billion owed to banks and bondholders. That has bankrupted hundreds of small developers and depressed China's economic growth.
But they highlight the industry's struggle under pressure from the ruling Communist Party to reduce soaring debt that is seen as an economic threat.
There is no indication Country Garden's problems might spread beyond China, which seals off its financial system from global capital flows, economists say. China's government is trying to reassure jittery homebuyers after a major real estate developer missed a payment on its multibillion-dollar debt, reviving fears about the industry's shaky finances and their impact on the struggling Chinese economy.
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