China's largest private real estate developer Country Garden is seeking to delay payment on a private onshore bond for the first time, the latest sign of a stifling cash crunch in the property sector, piling pressure on Beijing to step in, Reuters reported. Adding to worries about contagion risk, a major Chinese trust company that traditionally had sizable exposure to real estate, Zhongrong International Trust Co, has missed its repayment obligations on some investment products.
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Resources Per Country
- Afghanistan
- Armenia
- Australia
- Azerbaijan
- Bangladesh
- Brunei
- Cambodia
- China
- Cook Islands
- Cyprus
- Fiji
- Georgia
- Hong Kong
- India
- Indonesia
- Japan
- Kazakhstan
- Kyrgyzstan
- Laos
- Macau
- Malaysia
- Maldives
- Micronesia
- Mongolia
- Myanmar
- Nepal
- New Zealand
- North Korea
- Pakistan
- Papua New Guinea
- Philippines
- Singapore
- South Korea
- Sri Lanka
- Taiwan
- Tajikistan
- Thailand
- Turkey
- Uzbekistan
- Vanuatu
- Vietnam
For more than a quarter-century, China has been synonymous with relentless development and upward mobility. As its 1.4 billion people gained an appetite for the wares of the world — Hollywood movies, South Korean electronics, iron ore mined in Australia — the global economy was propelled by a seemingly inexhaustible engine. Now that engine is sputtering, posing alarming risks for Chinese households and economies around the planet, the New York Times reported.
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Deutsche Bank has settled the loans it extended to Go Airlines out of court with its promoters Wadia Group, people aware of the development said. Go Airlines, which operated Go First Airlines, is undergoing voluntary liquidation, the Economic Times of India reported. Last week, Deutsche Bank conveyed to its resolution professional Shailendra Ajmera and lenders that it wants to relinquish itself as a member of the committee of creditors (CoC) since it has separately settled its debt with the promoter.
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India’s capital markets watchdog has sought yet another 15 days to finish up the almost three-year-long investigation into Gautam Adani’s eponymous conglomerate, after the three-month extension already granted by the nation’s Supreme Court ended on Monday, Bloomberg News reported. The Securities and Exchange Board of India told the Supreme Court that it needs the additional time to wrap up work on seven out of the 24 matters it has been asked to investigate in the wake of the scathing attack by shortseller Hindenburg Research that accused the Adani Group of wide-ranging corporate malfeasance.
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Problems are mounting for China’s largest surviving property developer, Country Garden Holdings, which is desperately trying to avoid the same fate as its many defaulted rivals, the Wall Street Journal reported. The 31-year-old company said that it expects to post its worst loss since going public 16 years ago, and estimated the red ink could be as much as the equivalent of $7.6 billion for the first half of 2023. The developer also said its contracted sales slumped 60% in July from a year earlier—a much bigger decline than in previous months.
A “surge” of businesses will collapse across the country as the ATO goes after mounting legacy debt, experts have warned, The Australian reported. The ATO and other creditors currently pose the greatest ‘threat’ to cash-strapped small and medium-sized businesses, says Insolvency Australia, which has just released its latest Corporate Insolvency Index. It comes as a popular West Australian business Barretts Bakery, this week was put into administration after it owed the ATO $2 million.
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WeWork's warning of a bankruptcy risk would not have an impact on its India unit, regional CEO Karan Virwani said on Wednesday, Reuters reported. New York-based WeWork, which was valued at $47 billion in 2019, on Tuesday raised "substantial" doubt around the continuance of its operations and warned of a possible bankruptcy. WeWork India, which is backed and owned in majority by Indian real estate firm Embassy Group, said it was focused on growth with sustained profitability and the fundamentals of its business remain strong.
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Ratings agency Moody's on Thursday downgraded Chinese developer Country Garden's corporate family rating (CFR) to Caa1 from B1, citing heightened liquidity and refinancing risk after the company missed bond payments, Reuters reported. Caa1 rating is a level that signals a very high credit risk, according to the ratings agency's website. Country Garden expects to record a half-year loss owing to higher impairment provisions on projects, it said on Thursday.
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Foreign investors funneled over $3 billion into Chinese debt in July in the first net monthly inflows this year for the world's second-largest economy, data from the Institute of International Finance (IIF) showed on Thursday, Reuters reported. Inflows were less than a third of the $10.6 billion poured into Chinese bonds in December as China geared up to lift nearly two years of strict COVID-19 curbs. July also saw a $7.7 billion inflow from non-locals to Chinese stocks, a big jump from the $1.9 billion in June and the second-largest monthly inflows in 2023.
The Reserve Bank of India asked lenders to set aside more cash, stepping up measures to drain liquidity in the financial system, Bloomberg News reported. Bank stocks fell. The central bank ordered lenders to set aside 10% of their incremental deposits garnered between May 19 and July 28, Governor Shaktikanta Das said Thursday. The move will remove a little over one trillion rupees ($12 billion) from the banking system, he said after leaving interest rates unchanged.
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