Country Garden says it may not be able to repay debt, warns of uncertainty around liquidity position

Country Garden Holdings, a Chinese real estate developer, has announced that it will not be able to make all of its offshore debt repayments, including those issued in U.S. dollar notes. The company failed to make a debt repayment of 470 million Hong Kong dollars ($60 million) as of Tuesday. This failure could result in creditors demanding faster repayments or taking enforcement action. Country Garden's shares fell 1.19% following the announcement. The company also recorded a decline in contracted sales for September, marking the sixth consecutive month of decline and a decrease of 80.7% compared to the previous year. Looking ahead, Country Garden expects uncertainty in its liquidity position and plans for asset sales in the short and medium term due to a lack of improvement in property sales industry-wide.