The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023.
China’s property sector, which accounts for a quarter of the economy, has already seen a string of debt defaults by cash-squeezed developers since late 2021, with China Evergrande Group, the world’s most indebted property developer, at the centre of the crisis.
Contagion fears in the market re-surfaced last month when four high-profile developers signalled liquidity stress amid slumping home sales nation-wide.
Country Garden declined to comment on the investment bank reports.
JP Morgan noted that if Country Garden still defaulted after policies aiming at boosting liquidity for developers, it would show that “there is no guarantee of survival”.
Persons:
Aly, Dalian Wanda, Garden’s, ”, “, JP Morgan, Evergrande, ” JP Morgan, ” Morgan Stanley, Stephen Cheung
Organizations:
Reuters, Shanghai Country Garden, REUTERS, Garden, China Evergrande Group, Group, Greenland Holdings, Dalian Wanda Group, Dalian, HSBC, Communist Party
Locations:
HONG KONG, Shanghai, China, Greenland