Embattled Country Garden suspends shares

Debt-ridden Chinese developer Country Garden has suspended trading on the Hong Kong stock exchange. The developer was expected to publish its full-year results this week but will delay the publication while it collects more information on restructuring its debt pile. Country Garden defaulted on its debt last year and is facing a winding-up petition. It has total liabilities of $194bn (£155bn). The first hearing for Country Garden’s winding-up petition, which was filed by Ever Credit, is scheduled for 17 May. In the UK, the developer is trying to offload assets, including its £450m Calico Wharf project in Poplar, E14. The 5.9-acre site could deliver as many as 950 homes. Knight Frank is advising on the disposal. China’s real estate industry has been facing a major financial squeeze since 2021 when the government introduced measures to curb the amount big developers could borrow. Several large Chinese property developers, including Evergrande have defaulted on their debts in the past few years. Last week, Chinese state-backed property developer China Vanke reported a fall of more than 50% in its annual profit and told investors that it aimed to boost its cash flow by slashing debt over the next two years. Photo by Rex/Shutterstock