Shares in heavily indebted Chinese developer Country Garden soared more than 17 per cent on Thursday (Nov 23) as signs emerge that Chinese officials are planning more concrete support for the troubled sector.
One of the biggest players in China’s property industry, Country Garden has racked up debts estimated in June at 1.36 trillion yuan (US$191 billion).
It is just one of many companies, including Evergrande, caught up in a sector-wide crisis that has seen a string of debt-laden builders either defaulting or threatening to do so, fuelling fears of a spillover into the wider economy.
Bloomberg News reported on Wednesday that Country Garden, which is listed in Hong Kong, was on a draft list of 50 developers that would be eligible for more financial support, citing sources with knowledge of the matter.
The list compiled by regulators includes private and state-owned developers and is intended as a guide to banks considering shoring up companies via a variety of mechanisms, Bloomberg said.
