Back to today’s briefing

Story perspectives

Country Garden Faces $24.3 Billion Loss Amid Debt Crisis

1/16/2025

27 2

Summary

Country Garden's Collapse

Country Garden, once a titan in China's property market, has plunged into a shocking net loss of 178.4 billion yuan ($24.3 billion) for 2023, a stark contrast to the 6 billion yuan loss in 2022. As it grapples with a 12.8 billion yuan loss in early 2024, its shares remain suspended, caught in the turmoil of debt restructuring.

Summary

Investors Seize Opportunities

In 2024, Hong Kong's struggling commercial property market is drawing in eager investors as landlords slash prices in response to soaring interest rates and economic instability. With distressed transactions hitting a staggering HK$15 billion, notable sales like One HarbourGate East Tower and five retail podiums signal a promising surge in activity that’s likely to persist.

History

Historical Context

Country Garden's staggering losses echo the 2021 Evergrande crisis, which exposed vulnerabilities in China's property sector. Both developers over-leveraged amid a booming market, leading to defaults that triggered widespread financial instability. This ongoing crisis highlights the risks of rapid growth without sustainable practices in real estate investments.

1 of 3

Country Garden's Collapse

Country Garden, once a titan in China's property market, has plunged into a shocking net loss of 178.4 billion yuan ($24.3 billion) for 2023, a stark contrast to the 6 billion yuan loss in 2022. As it grapples with a 12.8 billion yuan loss in early 2024, its shares remain suspended, caught in the turmoil of debt restructuring.

1 / 3