Amid a crisis, Chinese property developer Country Garden has halted trading of its shares on the Hong Kong Stock Exchange, attributing the move to the postponement of its annual financial results publication as it undertakes debt restructuring.
The company, which defaulted on overseas debt last year and is confronting a winding-up petition, cited the industry’s ongoing volatility and increasingly complex operating environment as reasons for the delay.
The winding-up petition, filed by Ever Credit Ltd, a subsidiary of Kingboard Holdings, is set for its first hearing on May 17.
Country Garden’s share suspension coincided with the Hong Kong stock market’s reopening after the Easter weekend, while Chinese state-backed developer China Vanke also experienced a record-low share drop on Tuesday.
China’s real estate sector has been under considerable strain since 2021 due to government measures aimed at limiting borrowing by major developers, leading to defaults by prominent players like Evergrande and Country Garden.
The ramifications of the property market’s challenges extend to the broader economy, as the sector constitutes about a third of China’s economic activity.
Beijing has implemented various policies to stimulate housing demand, with recent regulatory actions including allegations by the country’s financial markets regulator against Evergrande and its founder for inflating revenues prior to the debt default, resulting in substantial fines and potential lifetime bans from China’s financial markets.
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