Still, Country Garden could not escape the overall slowdown in China’s property sector, and the developer was forced to report a $900 million loss for 2022 after revenue slumped by a fifth. Unlike Evergrande, which defaulted in December last year, Sunac appeared to be financially healthy and the boss, Mr Sun, had previously been diligent in repaying debts. The developer had $199 billion in liabilities at the end of 2022, according to Bloomberg. Last week, his firm China's third-largest developer defaulted, missing the deadline for coupon payments on a US742 million (1.1 billion) offshore bond. ![]() The developer didn’t borrow as heavily as its peers, and focused on building affordable homes in China’s less prominent and less developed cities. Unlike Evergrande, investors saw Country Garden as far more financially prudent. The developer also reported $340 billion in liabilities, including $85 billion in more short-term borrowings. Chinese property giant Country Garden has twice narrowly avoided defaulting on its debt in a matter of days. Last month, Evergrande finally revealed that it has lost a combined $81 billion in 20. Other developers, like Kaisa Group and Shimao Group Holdings, also defaulted on their payments. Yet new rules on how much debt developers could hold sent Evergrande into a liquidity crisis, and the company defaulted on its foreign-held debt in December 2021. Shanghai-based Shimao Group failed to pay. The company splurged on big, expensive projects, like Ocean Flower Island, a $35 billion set of artificial islands similar to Dubai’s Palm Jumeirah. Another major Chinese developer has defaulted on its debt, dealing a new blow to the ailing real estate sector in the world’s second largest economy. Evergrande, at one point China’s largest developer, loaded up on debt to fuel its rapid expansion.
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