China’s property market giant, Country Garden, has seen its debt problems intensify following the suspension of its onshore bonds. This has resulted in its shares tumbling to a record low on Monday.
Country Garden shares fell 16.3% by midday, leading to a 3.9% drop in the Hang Seng Mainland Properties Index (.HSMPI). The stock has lost nearly 50% this month alone.
Shares of Country Garden’s property management unit, Country Garden Services, have also fallen more than 10%.
The failures of Country Garden, which was once considered a financially sound developer, are adding to concerns in a real estate market that is already facing weak buyer demand. The situation also adds pressure on policymakers, as a growing number of private real estate companies are on the verge of collapsing if they do not receive financial support soon.