Troubles Mount For China's Real Estate Sector: After Evergrande, 'Country Garden' — Largest Property Developer — Faces Default

Following the Evergrande crisis, another Chinese property developer teeters on the edge of default unless a $15 million payment is made within a 30-day grace period, reported Reuters.

With nearly $11 billion in offshore bonds and $6 billion in offshore loans, Country Garden, China's largest property sector developer, faces the potential of default.

This situation unfolds amid a deepening crisis in China's property sector, further straining the country's economic growth.

The lack of payment, which was expected following Country Garden's warning last week about its inability to meet offshore debt obligations, would add the company to the growing list of Chinese developers who have defaulted.

Country Garden had also missed other offshore payments in recent weeks, although those payments are still within their 30-day grace periods.

More than 40 per cent of Chinese property developers have defaulted on their debt obligations since 2021.

According to a report by Reuters, Chinese developers have defaulted on more than $114.6 billion of the $175 billion in dollar bonds outstanding since 2021.