[CC may contain inaccuracies] We love an urgent high level meeting,
Right? Do we love that?
Yes. The CCRC, the securities regulator, the
watchdog, essentially, according to sources, telling us that they're going
to hold an urgent meeting today, Friday. Perhaps I would assume it's going to be
in Beijing. Interestingly, you just mentioned
Country Garden, which was once just even a year or two ago, was the world's
China's biggest property developer by sales.
It's now number six and it's been a bellwether.
It's one of the few major property developers that hasn't defaulted yet.
It missed those two interest payments earlier this week.
It has a 30 day grace period. But right now the cash position is a
problem for this company, as it is with all these developers.
So what can this urgent meeting accomplish?
So they're going to get some major developers.
I'm not sure who or which ones, but not Country Guardian, according to the
sources, will not be there. And also those essentially financial
institutions which the government is trying to stimulate lending to the
property sector after that years, several years long
crackdown essentially to whittle down the the the debt woes in this sector.
And it's a major pillar of this economy, obviously, that needs a resolution.
But there doesn't seem to be one. And I think, you know, if you look at
the dollar bonds right now, you can see that the country gardens dollar bonds
plunged 59% just in the past month. We can change the page and look at the
stock chart, which has a similar ski slope downwards.
It's fallen 30% in the last month, down more than 60% year to date and is the
latest poster child, obviously in the property sector woes.
And country garden has always been seen as a bellwether, if you will.
It is run by, you know, one of the richest women in China.
And it is seen as the a strong pillar of the property sector, but it is now
facing dollar bond default. So we have to watch this space very
closely. I guess there's diversity even in the
property market in China, Steve. And this is a way that country garden
echoes Evergrande because there is a sense that they may be looking at that
billionaire chair, that woman to dip into her fortune.
Yeah, that that is what creditors are looking at because that is something
that China Evergrande founder quake and had to do essentially and you know
country garden I just mentioned her just a minute ago is the chairwoman is
essentially one of the richest women in China.
She has a fortune estimated at about $5 billion.
And guess what? She's getting a dividend payment later
today from her personal stake of upwards of $28 million.
So will she be kind of pressured to dip into her personal pocket to pay some of
these, you know, coupons on the interest that is due?
You know, much like China, Evergrande founder probably reluctantly had to do.
But again, you know, this is a company that is faced with a cash crunch.
The first seven months attributed sales fell 35%.
And just yesterday, late last night, in fact, in a statement to the Hong Kong
Stock Exchange, Country Garden said it expects to report a multibillion dollar
loss in the first half. It is an addition to an earlier
forecast. We knew it was going to be troubled in
the first half, but now it's putting a number of a loss of between 6.2 billion
U.S. dollars and 7.6 billion USD.
And again, when those attributable sales are dipping, revenue is not coming in.
Buyers are not lining up around the block to buy these properties.
It's a serious problem for one of the biggest bellwethers in the property
sector. Former bellwether.
