Politics

Politics

China launches military drills around Taiwan days after ne…

23-05-2024

China has initiated large-scale military drills around Taiwan, branding them as "punishment" for so-called "separatist...

Politics

Taiwan pleased with US aid package, China opposes arms sal…

25-04-2024

  Taiwan's President Tsai Ing-wen expressed satisfaction on Wednesday over the U.S. Congress passing a comprehensive f...

Politics

US Treasury Secretary Yellen advocates fair trade practice…

05-04-2024

  During her visit to China, US Treasury Secretary Janet Yellen emphasized the need for a fair playing field for Ameri...

Politics

Trump authorized covert CIA operation to influence China's…

14-03-2024

  President Donald Trump greenlit a clandestine campaign aimed at manipulating public sentiment in China against its g...

Politics

Taiwan's historic election: William Lai triumphs, cementin…

13-01-2024

William Lai secured the presidency in a groundbreaking election in Taiwan, prompting confetti to shower over the jubil...

 

Chinese property developer Country Garden Holdings is set to raise $300 million through a primary placement aimed at alleviating its debts, according to a term sheet obtained by Reuters on

Monday.

The placement will involve the issuance of 1,800 million company shares at a fixed price of HK$1.30 per share, indicating a 17.7% discount from Monday's closing price.

As of now, Country Garden has not responded to requests for comments regarding this move.

The company, along with its property services arm, Country Garden Services Holdings, has been facing pressure in the market due to liquidity concerns, despite recently securing a dual-tranche loan deal earlier this month.

In a recent announcement, the home builder disclosed its anticipation of posting an unaudited net loss for the six months ending on June 30. This is a stark contrast to the net profit of 1,910 million yuan ($267.31 million) it recorded in the same period the previous year.

The company attributes this gloomy financial outlook to weaknesses in its real estate business and an increase in project-related impairment provisions.

The property sector in China has witnessed a series of debt defaults by developers facing cash flow constraints over the past few years. One of the prominent examples is China Evergrande Group, recognized as the world's most indebted property developer, which has been at the center of the ongoing crisis.

Country Garden's decision to raise funds through the primary placement comes as it strives to address its financial challenges and maintain stability in the market amid the ongoing turbulence in China's real estate industry. Photo Yinan Chen, Wikimedia commons.