Tag #Country Garden

How did the unprecedented debt crisis that began in 2021 contribute to Country Garden's financial difficulties and the overall decline in Chinese property sales?

The substantial losses reported by Country Garden reflect a broader crisis in China's property sector, triggered by an unprecedented debt crisis starting in 2021. The company's significant provisions for inventory, totaling $35.8 billion in 2023, highlight the severity of the situation and the impact on the developer's financial health. The reduction in provisions in the first half of 2024 suggests a potential stabilization, but the company still faces challenges.