Country Garden Denies Officials Rumor

Country Garden, once China’s biggest developer by sales, has denied claims that a working group led by the vice mayor of Foshan City have been stationed at the company after its share prices slumped by 7.69% on Monday with several domestic bonds leading the decline. Rumors that the developer may default on its debts have circulated for some time, as multiple debts due in the short term have pressured the company’s cash flow. The firm has the ability to cover short-term debt maturity barring accidents, as it has CNY147.55 billion cash on its balance sheet, of which CNY128.28 billion is unrestricted cash as of end-2022, while the corresponding short-term debt due within one year is about CNY93.71 billion. (Source: Yicai)