Chinese property developer Country Garden Holdings Co. missed a coupon payment on a yuan bond for the first time, according to the report from Bloomberg who cited a source familiar with the matter.
The report stated that Country Garden failed to pay a 96 million yuan coupon that was due Tuesday for its 4.8% bond series maturing in 2026. There will be a 30 trading-day grace period for the Chinese developer to pay its debt before a call default.
The share price of Country Garden snapped its three-day winning streak on Tuesday and fell as much as 4.9% to HKD0.58 per share.
China’s property developers are still struggling with low demand from home buyers despite several measures from the government.
Some economists see China is finally giving up on bailing out its property sector as its government body said during the press conference along with the annual parliamentary meeting last Saturday that troubled developers will have to go bankrupt, which underlined Beijing’s earlier plan to prioritize manufacturing, education and consumption.
