Market history · Credit ·
Country Garden misses dollar bond payments
In early August 2023 Country Garden, one of China's largest private-sector property developers, said it had missed two coupon payments on dollar bonds. Reuters reported that the developer, which had been seen as healthier than Evergrande, faced further coupon deadlines in the following weeks. Bond coupons normally come with a grace period, during which a missed payment can still be made good.
Country Garden's difficulty widened the sense that China's property downturn was not confined to the most indebted firms. Falling home sales and tight funding weakened the sector as a whole.
The takeaway
A stronger name in a weak sector can still fail. Credit quality depends on the sector as well as the issuer.
Sources
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