خبریںاسٹاکسکنٹری گارڈن کو ایک اور آن شور بانڈ کے ذرائع کے لیے میچورٹی توسیع کی منظوری مل گئی۔

کنٹری گارڈن کو ایک اور آن شور بانڈ کے ذرائع کے لیے میچورٹی توسیع کی منظوری مل گئی۔

BEIJING/HONG KONG (Reuters) -Country Garden has won approval from its creditors to extend the maturity of one more onshore bond, sources with knowledge of the matter said, as the Chinese developer battles to avoid a default amid Beijing’s efforts to stabilise the crisis-hit sector.

The maturity period of the cash-strapped Country Garden’s onshore bond has been extended by three years, said the sources, who declined to be named as they were not authorised to speak to the media.

Country Garden’s financial woes are the latest to hit the beleaguered property sector, which was once a pillar of growth in the world’s second-largest economy but has become its biggest drag since 2021 in the wake of an unprecedented liquidity crisis.

Shares in Country Garden, China’s largest private property developer, jumped as much as 14% in Hong Kong on Wednesday.

A Country Garden spokesperson did not immediately respond to Reuters’ request for comment on the maturity extension of the bond.

Before the latest voting to extend the maturities of eight onshore bonds, Country Garden managed to avoid default at the last minute twice earlier this month, bringing some relief to the battered property sector.

Country Garden, one of the few large Chinese developers that have not defaulted on debt obligations, has been facing liquidity pressure with reduced available funds as sales plunged, its interim financial statements show.

Despite the temporary debt reprieve, investors are focusing on near-term sales prospects for Country Garden and its peers after authorities rolled out a raft of property support measures in the last few weeks.

Those measures included lowering existing mortgage rates and preferential loans for first-home purchases in big cities, but analysts say more is needed to stabilise the sector, restore consumer confidence and induce an eventual recovery.

“Investors will monitor how quickly Country Garden can revive its sales, going forward, with Beijing easing the curbs on the property sector,” said Ting Meng, a senior credit strategist at ANZ.

“The developer is very likely to start similar extension negotiations with offshore creditors soon, given it will be challenging for it to service the outstanding debts with its current cash positions,” she added.

Country Garden’s onshore creditors voted on Monday for proposals by the distressed developer to extend repayments on eight onshore bonds worth 10.8 billion yuan ($1.48 billion) by three years.

Of those eight Country Garden bonds, maturity extensions for six have been approved, Reuters reported on Tuesday, citing sources. The decision on extending the maturity of the eighth bond is not known yet.

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