China’s largest private real estate developer, Country Garden, is seeking to delay payment on a private onshore bond for the first time. This is the latest sign of a stifling cash crunch in the Chinese property sector.
Anxiety about contagion risks is spreading through global markets, putting China’s government under mounting pressure to deliver support for the ailing real estate sector—which accounts for roughly a quarter of the Chinese economy.
Once considered a more financially sound developer, Country Garden’s woes could also have a chilling effect on homebuyers and financial firms, with more private developers close to a tipping point if Beijing’s support does not materialize soon.