China’s Country Garden faces default

Debt-ridden Chinese developer Country Garden is set to default on around £152bn in liabilities. In a statement on the Hong Kong stock exchange, Country Garden said it would “not be able to meet all of its offshore payment obligations when due or within the relevant grace periods” and “the group’s cash position remains under significant pressure”. Its shares dropped by 10.7%. In its monthly Economic Outlook, the International Monetary Fund said Country Garden was facing “severe liquidity stress” in “a sign that real estate distress is spreading to stronger developers, despite policy-easing measures”. Country Garden was worth about £40bn at its height, but is now valued at £2.2bn. The Times (£)The FT (£)The Guardian