Chinese property developer Country Giant warns of USD 7.6 bn loss as it nears default

Beijing [China], August 26 (ANI): One of China’s biggest property developers, Country Garden, says it has burned through up to USD 7.6 billion in the first half of the year, compounding the crisis coursing through the country’s embattled real estate sector, CNN reported.
Country Garden warned investors in a Hong Kong stock exchange filing that it would likely record a loss of 45 billion to 55 billion Chinese yuan (about USD 6.2 billion to USD 7.6 billion) for the six months through June.
That compares with a profit of approximately 1.9 billion yuan (USD 264.3 million) for the same time last year.
The disclosure lays bare the financial woes currently facing Country Garden, a massive builder of hundreds of thousands of homes annually across China, as per CNN.
The developer, which employs some 300,000 people, has a massive debt pile that’s being compared to that of Evergrande, the world’s most indebted property group.
The company has in recent weeks become the latest sign of China’s economic troubles, as it teeters on the brink of default and, by its own admission, works to save itself.
Country Garden shares plunged 8.7 per cent in Hong Kong Friday following its loss warning, as well as a report from Chinese news outlet Yicai that the firm was preparing for a debt restructuring, citing unidentified sources.
According to CNN, the company had said in its filing that it would “consider adopting various debt management measures,” without elaborating further, as well as lean on a task force newly set up to “cope with” its challenges. Country Garden did not immediately respond to a request for comment. (ANI)