Metals Take Fresh Knock as China’s Real Estate Woes Intensify

(Bloomberg) — Base metals sank as fresh fears over property turmoil in China gripped markets despite news that China may unleash another round of stimulus. 

All six major base metals fell on the London Metal Exchange, with zinc losing as much as 2.5% to $2,449 a metric ton, the lowest on an intraday basis in a month.

Country Garden Holdings Co. Ltd., a major developer in China, warned that it might not be able to meet repayments on offshore debt and has hired advisers, a strong indication it faces a restructuring. China is the world’s most important market for base metals, and the announcement has reignited investor fears about possible market contagion and an even deeper slump in construction activity.