By Bingyan WangShares of Chinese property developers fell sharply Monday, weighed by negative news, including property giant Country Garden's suspension of bond trading, deteriorating credit data and profit alerts. Country Garden shares fell 15% on news that it was suspending the 2016 yuan bond from trading on the Shanghai Stock Exchange starting Monday as part of its efforts to resolve its liquidity problem. Investors are speculating whether Beijing will rescue Country Garden given its scale and the impact on the economy as a whole of further defaults. Country Garden's "credit distress is likely to spill over to the country's property and financial markets," analysts from Moody's said in a note. Shares of another property developer, China Jinmao Holdings, fell 6.5% after being warned of an 80% drop in net profit, citing weakness in China's real estate market.

Source: Wall Street Journal August 15, 2023 15:15 UTC