China's Country Garden Skirts Default, Dollar Bond Spikes 20%: Unresolved Risk Remains
Portfolio Pulse from Piero Cingari
China's real estate developer Country Garden Holdings Co. Ltd. (NYSE:CRVYY) narrowly avoided a default by making a last-minute interest payment on its $500 million bonds. Despite this, the company's financial standing remains precarious with a staggering debt load of $187 billion and weak sales. The company's struggles reflected in the broader market with the Hang Seng Index, tracked by the iShares MSCI Hong Kong Fund Index (NYSE:EWH), falling 2.06%.
September 05, 2023 | 1:29 pm
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NEGATIVE IMPACT
Country Garden Holdings avoided a default but its financial standing remains precarious with a huge debt load and weak sales.
The company's last-minute payment has temporarily avoided a default but it still faces a huge debt load and weak sales. This could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
The Hang Seng Index, tracked by the iShares MSCI Hong Kong Fund Index, fell 2.06% amid concerns about China's faltering economic recovery.
The struggles of Country Garden Holdings and concerns about China's economic recovery have negatively impacted the Hang Seng Index. This could negatively impact the iShares MSCI Hong Kong Fund Index in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80