Caixin Explains: The Financial Woes Behind Country Garden’s Missed Bond Payments

Country Garden Holdings Co. Ltd., one of China’s largest property developers, is in hot water.

After missing coupon payments on two offshore bonds earlier this week, the Hong Kong-traded builder said Thursday that it expected its net loss in the first half of 2023 to reach 45 billion yuan ($6.2 billion) to 55 billion yuan, reversing a net profit of around 1.9 billion yuan in the same period last year. The estimate is well above the company’s net loss of 3 billion yuan for all of 2022, the first annual loss since it went public in 2007.