It branched out beyond its home province of Guangdong and pushed aggressively into China’s lesser developed third- and fourth-tier cities, benefiting from a boom after 2015 when China, as part of a national “shantytown redevelopment” plan, started paying residents cash to trade in dilapidated shacks in smaller cities and towns. Yang, who was co-chair with her father until this March, when she assumed the position exclusively, remains Country Garden’s majority shareholder.Ĭountry Garden expanded rapidly, moving in lock step with the government’s urbanization push. Yang became the richest woman in Asia, with a fortune eventually estimated as high as $29 billion. When Country Garden’s stock listed, the 25-year-old Ms. Yang transferred his 70 percent stake to his second daughter, Yang Huiyan, who was then a manager in the company’s procurement department. Two years before the public offering, Mr. Now, its collapse reflects the speed and severity of the country’s real estate meltdown, which threatens to derail the broader economy. The company’s improbable rise, from a regional homebuilder to a nationwide behemoth, tracked China’s own meteoric ascent. It has been a dramatic fall for Country Garden.
The company is scrambling to raise cash and keep its creditors at bay, selling off stakes in properties and issuing shares at a discount. Last week, after reporting a $7.1 billion loss for the first six months of 2023, Country Garden said there were “material uncertainties which may cast significant doubt” on its ability to avoid bankruptcy. On Friday, the company won a last-minute approval from creditors to postpone repayment of $537 million in yuan-denominated bonds, originally due on Monday, until 2026, according to documents shared by Country Garden.
It told creditors on Tuesday that it made the interest payments of $22.5 million within the grace period before default. Country Garden has staved off an immediate crash.
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