Country Garden Faces Grim Outlook as Sales Slump Deepens in June

(Bloomberg) – Country Garden Holdings Co.’s sales recording again in June, progressing worse than developer peers, reduced the demand for lack of policy support.

According to Bloomberg calculations, monthly contracted sales in Foshan -based company fell by 35% compared to the previous year. The decline was already coming from a low base, and for China’s top 100 developers, it sewed more than a 23% drop in new home sales.

Prices in China erode corporate profits and employee revenues, and just as the effects of a stimulus blitzin began to wear out last September, it leads to suppressing the demand for housing purchases. Last month, Prime Minister Li Qiang promised more action to revive the market, which analysts say it was necessary to increase consumption and balance a threat to export from US tariffs.

Country Garden relys on a return in sales as it aims to restructure its debt after a default more than a year ago. Nevertheless, according to a hearing last month, the efforts of gaining support for a $ 14.1 billion -dollar open sea restructuring of $ 14.1 billion is transformed into resistance, as a part of the demands of a key group of locks will not be accepted.

The builder needs the support of three -quarters of borrowers between the two individual groups, the bank lenders and bond holders. He said that 70% of the bonds received support from the owners, but even if he bought more than this class, he said that bank creditors still need bank creditors to pass the plan with the “editing scheme” procedure. A few -month reprieve was given from the hearing of the liquidation petition and was set for the next 11 August.

Country Garden said that it aims to implement the proposed restructuring until the end of 2025 and wanted to reach an agreement with the great creditors on the conditions of “possible as soon as possible”.

-Help from Foster Wong.

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