Chinese developer avoids default despite financial challenges and previous defaults

  • Country Garden made interest payments on two onshore bonds within a grace period
  • The payments were atypical given the developer’s stretched finances and previous defaults on other bonds
  • The funds for the payments likely came from additional loans or sales of pledged assets
  • Country Garden is facing a liquidation petition in a Hong Kong court
  • Developers including Evergrande, China Resources Land, China Overseas Land & Investment, and Gemdale have bonds due in May

Chinese developer Country Garden has made interest payments on two onshore bonds within a grace period, avoiding default. The payments were considered atypical given the company’s stretched finances and previous defaults on other bonds. Analysts speculate that the funds for the payments likely came from additional loans or sales of pledged assets. Country Garden is currently facing a liquidation petition in a Hong Kong court. Other developers in China, including Evergrande, China Resources Land, China Overseas Land & Investment, and Gemdale, also have bonds due in May.

Factuality Level: 8
Factuality Justification: The article provides a detailed account of Chinese developer Country Garden making interest payments on two onshore bonds within a grace period, avoiding default. It includes quotes from analysts and background information on the company’s financial situation. The information is relevant, well-researched, and objective, without sensationalism or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about Chinese developer Country Garden making interest payments on two onshore bonds within a grace period, avoiding default. It includes details about the amount paid, the involvement of a state guarantor, and analysts’ perspectives on the situation. The article stays on topic and supports its claims with examples and quotes from analysts. However, it lacks in-depth analysis of long-term trends or solutions to the broader issues in the Chinese property market.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the Chinese property market and the bond market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial situation of Chinese property developer Country Garden and its efforts to make interest payments on two onshore bonds. While the company’s stretched finances and previous defaults on other bonds are mentioned, there is no mention of an extreme event or its impact rating.
Public Companies: Country Garden (N/A), Longfor (N/A), CIFI (N/A), Seazen (N/A), Evergrande (N/A), China Resources Land (N/A), China Overseas Land & Investment (N/A), Gemdale (N/A)
Key People: William Wu (Daiwa analyst), Jeff Zhang (Morningstar analyst)

Reported publicly: www.wsj.com