Housebuilder Country Garden is doing poorly. The Hong Kong stock exchange is now stopping trading in its shares due to regulations. The company will face its next hurdle in May.
In China’s real estate crisis, trading in securities from the ailing Country Garden company has been stopped on the Hong Kong stock exchange. The company announced this at the start of trading. The once largest residential builder in China in terms of sales figures had previously announced that it would have to postpone the publication of its balance sheet for 2023. In doing so, Country Garden violated a rule on the Hong Kong stock exchange, which now had consequences on the trading floor after the Easter holidays.
Last Thursday, Country Garden justified the postponement by saying it needed to collect more information. The indebted group missed a payment to creditors abroad last year. A financier has now applied to a Hong Kong court to break up the company. The first hearing is scheduled to begin in mid-May.
The crisis in the real estate sector has been weighing on the performance of the world’s second largest economy for some time. In recent decades, many people in China who wanted to invest their money invested in real estate because there were hardly any other alternatives. Due to the crisis-related decline in the value of apartments, many are holding on to their money, which is also putting pressure on consumption.
Source: Stern
