{"id":6376,"date":"2023-09-04T10:55:16","date_gmt":"2023-09-04T10:55:16","guid":{"rendered":"https:\/\/prosfunds.com\/business\/country-garden-survives-one-debt-deadline-the-next-is-just-days-away\/"},"modified":"2023-09-04T10:55:16","modified_gmt":"2023-09-04T10:55:16","slug":"country-garden-survives-one-debt-deadline-the-next-is-just-days-away","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=6376","title":{"rendered":"Country Garden survives one debt deadline. The next is just days away"},"content":{"rendered":"
\n

\n Editor\u2019s Note: <\/b>Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the world.\n<\/p>\n<\/p>\n

\n Investors in embattled Chinese property giant Country Garden are breathing a collective sigh of relief Monday, after it reportedly won approval from local creditors to delay repayments on a maturing bond, averting the threat of a default \u2014 at least for a few days.\n <\/p>\n

\n It was the first debt extension the firm has secured since its liquidity crisis became public last month and <\/strong>offers a temporary reprieve for China\u2019s real estate industry, which has been gripped by fears that Country Garden\u2019s debt woes would spill over to its peers and ripple through the economy.\n <\/p>\n

\n The company hasn\u2019t replied to a request for comment from CNN.\n <\/p>\n

\n But the company is not off the hook. It failed to pay the interest owed on two dollar bonds last month and a 30-day grace period on those missing payments expires this week. A failure to pay those creditors could still lead to a default.\n <\/p>\n

\n On Monday, Country Garden\u2019s stock soared 15% in Hong Kong following multiple reports that bondholders had agreed a plan for the company to extend payment for a 3.9 billion yuan ($540 million) bond sold to investors in China that matured Saturday. It has recorded the biggest daily gain in nine months, but remains 62% down so far this year.\n <\/p>\n

\n Hong Kong\u2019s Hang Seng<\/p>\n

(HSI) Index advanced 2.5% and had its best day in more than a month, led by a surge in the property sector. Shares also received a boost from a new batch of stimulus measures announced last Thursday to boost the property market. Hong Kong stocks were closed last Friday because of a typhoon.\n <\/p>\n

\n According to the agreement with creditors, which was reported by multiple state-owned media outlets on Saturday, Country Garden will now be able to stretch its payment of the outstanding principal of $540 million into 2026. But interest on the bond must be paid as originally scheduled.\n <\/p>\n

\n The bond was issued in September 2016, with an issue amount of 5.83 billion yuan ($800 million) and a coupon rate of 5.65%, according an offering document seen by CNN.\n <\/p>\n

\n More than 56% of the bondholders affected, including major state-owned banks and private equity funds, voted in favor of the agreement, according to state-owned Southern Media Group.\n <\/p>\n

\n The deal \u201cmeans nearly 70% of the bond\u2019s principal payment will be delayed to three years later, which could greatly reduce pressure on Country Garden and improve its long-term debt servicing ability,\u201d analysts from Huatai Securities wrote in a Sunday research note.\n <\/p>\n

\n This particular bond had the largest outstanding balance that the company needed to pay out among its onshore debt in the coming year, they added.\n <\/p>\n

\n But, Yeap Jun Rong, a market analyst at IG, said past lessons from the 2021 default of property developer China Evergrande, suggests any extension could be just \u201ca near-term reprieve,\u201d with the lack of an eventual resolution to its debt woes still a \u201cheadwind\u201d for investors.\n <\/p>\n

\n Country Garden, which was China\u2019s largest residential developer by sales last year, is battling a cash crunch.\n <\/p>\n

\n Last week, it reported a record loss of $7 billion for the first six months of the year, citing a persistent slump in the property market and a difficult refinancing environment. It confirmed that it had missed payments to holders of some of its offshore bonds last month and could default if the firm\u2019s financial conditions continue to deteriorate.\n <\/p>\n

\n The company has nearly $200 billion in total liabilities and faces mounting pressure to pay off its debts.\n <\/p>\n

\n It has about 31 billion yuan ($4.3 billion) in bonds set to mature through the end of 2024, according to Moody\u2019s.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the world. Investors in embattled Chinese property giant Country Garden are breathing a collective sigh of relief Monday, after it reportedly won approval from local creditors to delay repayments on […]<\/p>\n","protected":false},"author":1,"featured_media":6377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-6376","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nCountry Garden survives one debt deadline. The next is just days away | Prosfunds<\/title>\n<meta name=\"description\" content=\"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=6376\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Country Garden survives one debt deadline. The next is just days away | Prosfunds\" \/>\n<meta property=\"og:description\" content=\"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prosfunds.com\/?p=6376\" \/>\n<meta property=\"og:site_name\" content=\"Prosfunds\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-04T10:55:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/09\/230904125736-country-garden-0831-nanjing.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/prosfunds.com\/?p=6376#article\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/?p=6376\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\"},\"headline\":\"Country Garden survives one debt deadline. The next is just days away\",\"datePublished\":\"2023-09-04T10:55:16+00:00\",\"dateModified\":\"2023-09-04T10:55:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prosfunds.com\/?p=6376\"},\"wordCount\":633,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/prosfunds.com\/?p=6376#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prosfunds.com\/?p=6376\",\"url\":\"https:\/\/prosfunds.com\/?p=6376\",\"name\":\"Country Garden survives one debt deadline. The next is just days away | Prosfunds\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/#website\"},\"datePublished\":\"2023-09-04T10:55:16+00:00\",\"dateModified\":\"2023-09-04T10:55:16+00:00\",\"description\":\"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the\",\"breadcrumb\":{\"@id\":\"https:\/\/prosfunds.com\/?p=6376#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prosfunds.com\/?p=6376\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prosfunds.com\/?p=6376#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prosfunds.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Country Garden survives one debt deadline. The next is just days away\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prosfunds.com\/#website\",\"url\":\"https:\/\/prosfunds.com\/\",\"name\":\"Funding Factories\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prosfunds.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/prosfunds.com\/#organization\",\"name\":\"Funding Factories\",\"url\":\"https:\/\/prosfunds.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"width\":780,\"height\":140,\"caption\":\"Funding Factories\"},\"image\":{\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/prosfunds.com\"],\"url\":\"https:\/\/prosfunds.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Country Garden survives one debt deadline. The next is just days away | Prosfunds","description":"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prosfunds.com\/?p=6376","og_locale":"en_US","og_type":"article","og_title":"Country Garden survives one debt deadline. The next is just days away | Prosfunds","og_description":"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the","og_url":"https:\/\/prosfunds.com\/?p=6376","og_site_name":"Prosfunds","article_published_time":"2023-09-04T10:55:16+00:00","og_image":[{"width":800,"height":450,"url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/09\/230904125736-country-garden-0831-nanjing.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/prosfunds.com\/?p=6376#article","isPartOf":{"@id":"https:\/\/prosfunds.com\/?p=6376"},"author":{"name":"News Room","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6"},"headline":"Country Garden survives one debt deadline. The next is just days away","datePublished":"2023-09-04T10:55:16+00:00","dateModified":"2023-09-04T10:55:16+00:00","mainEntityOfPage":{"@id":"https:\/\/prosfunds.com\/?p=6376"},"wordCount":633,"commentCount":0,"publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/prosfunds.com\/?p=6376#respond"]}]},{"@type":"WebPage","@id":"https:\/\/prosfunds.com\/?p=6376","url":"https:\/\/prosfunds.com\/?p=6376","name":"Country Garden survives one debt deadline. The next is just days away | Prosfunds","isPartOf":{"@id":"https:\/\/prosfunds.com\/#website"},"datePublished":"2023-09-04T10:55:16+00:00","dateModified":"2023-09-04T10:55:16+00:00","description":"Editor\u2019s Note: Sign up for CNN\u2019s Meanwhile in China newsletter, which explores what you need to know about the country\u2019s rise and how it impacts the","breadcrumb":{"@id":"https:\/\/prosfunds.com\/?p=6376#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prosfunds.com\/?p=6376"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prosfunds.com\/?p=6376#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prosfunds.com\/"},{"@type":"ListItem","position":2,"name":"Country Garden survives one debt deadline. The next is just days away"}]},{"@type":"WebSite","@id":"https:\/\/prosfunds.com\/#website","url":"https:\/\/prosfunds.com\/","name":"Funding Factories","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prosfunds.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/prosfunds.com\/#organization","name":"Funding Factories","url":"https:\/\/prosfunds.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","width":780,"height":140,"caption":"Funding Factories"},"image":{"@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","caption":"News Room"},"sameAs":["https:\/\/prosfunds.com"],"url":"https:\/\/prosfunds.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/6376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6376"}],"version-history":[{"count":1,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/6376\/revisions"}],"predecessor-version":[{"id":6378,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/6376\/revisions\/6378"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/media\/6377"}],"wp:attachment":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}