Country Garden Is The Latest “Doomed” Chinese Property Developer To Raise USD 1 Billion

18th November 2021
Country Garden Is The Latest “Doomed” Chinese Property Developer To Raise USD 1 Billion

Troubled Chinese property developer Country Garden is raising HKD 8 billion (USD 1.03 billion) through a share sale.

The move comes after sceptics feared the property giant would crumble following the demise of China Evergrande, which has vigorously rocked China’s real estate market.

Country Garden will sell 150 million shares at HKD 53.35 each, which is a 9.5% discount to Wednesday’s closing price of HKD 58.95.

On Monday, fellow “doomed” Chinese property developer Sunac revealed it raised a total of USD 953 million.

China Evergrande, which is still on the brink of default despite narrowly missing it again, is the world’s most indebted property firm with USD 300 billion in debt.

Market watchers feared that the contagion effect would infect the rest of China’s property market, sinking adjacent real estate giants such as Sunac, Country Garden and Kaisa.

Whilst one Bread author wrote about how Kaisa was on the verge of a second death, another Bread writer argued that Sunac and Country Garden would not face the same fate as Evergrande.

Since the publication of both, Kaisa has defaulted on debt and now Sunac is raising funds.

Kaisa’s non-disclosure of defaulted wealth management products further highlights dangers to China’s wider property sector.

Image credit: Zhou Xian on Unsplash

Written by Bread News Team
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