China developer Country Garden shares extend losses on debt worries; others fall (updated)

Country Garden Services Holdings

24/07/2023 03:42

(Updates to add securities prices, context)
       SHANGHAI/SINGAPORE, July 24 (Reuters) - Shares and bonds
in Chinese property developer Country Garden  2007.HK  and its
property service arm Country Garden Services Holdings  6098.HK 
tumbled on Monday, extending losses from the previous week on
debt concerns.
    More liquidity troubles surfaced in China's property sector
last week, sending down shares and bonds of the country's
biggest developers.
    Country Garden Services Holdings shares slumped more than
10% on Monday, while Country Garden fell more than 5%, with both
down to their lowest level since last November.
    Two onshore-traded bonds of Country Garden  CN163015SH= ,
 CN149632SZ=  plunged roughly 20% each, and some of its
offshore-listed bonds also declined.
    The property firm's move last week to refinance part of a
2019 loan facility failed to assure investors of its ability to
repay debt due in coming months.
    The Hang Seng Mainland Properties Index  .HSMPI  declined
more than 3%, while the CSI 300 Real Estate Index  .CSI000952 
dropped roughly 1.5%, even after China's cabinet approved
guidelines on transforming underdeveloped areas in mega-cities
that analysts said would bolster developers.
    The property sector, which accounts for about 25% of China's
gross domestic product, is on a downward trend. Home sales are
slumping, and the government is moving to rein in unsustainable
borrowing built up during a decade-long building boom.
        Shares in other developers, including Longfor Group
 0960.HK , China Overseas Land & Investment  0688.HK  and Sunac
China Holdings  1918.HK , also slumped on Monday. 

 (Reporting by Jason Xue in Shanghai and Tom Westbrook in
Singapore; Editing by Kim Coghill and Jamie Freed)
 ((Jason.Xue@thomsonreuters.com;))