Country Garden has long been deemed financially solid but was unable last Monday to make two bond payments. Photo: STR / AFPSource: AFPShares in Chinese property giant Country Garden plunged on Monday after it missed bond payments and warned of multibillion-dollar losses, deepening concerns over the nation's heavily indebted real estate sector. Country Garden is a privately owned real estate giant named in Forbes' list of the 500 largest companies in the world. Like heavily indebted competitor Evergrande, any collapse of Country Garden would have catastrophic repercussions for the Chinese financial system and economy. Country Garden is particularly susceptible to weak demand because it focuses on the lower end of the property market, launching ambitious projects in secondary cities where local buyers wield less purchasing power.

Source: Daily Nation August 14, 2023 03:47 UTC