Chinese property developer Country Garden said it hasn’t signed any definitive agreement on new share placement and at this stage, it’s not considering share placement, according to a filing to the Hong Kong Stock Exchange on Tuesday.
Facing uncertainties in the market, Country Garden will closely monitor the time window for expanding financing channels and actively discuss with intermediaries about financing plans, it noted.
Earlier on Tuesday, IFR had reported that Country Garden had cancelled the proposed HK$2.34 billion share placement. The developer was originally planning to place 1.8 billion shares at a price of HK$1.3 per share, which represents a discount of 17.7% to the closing price of HK$1.58 on Monday.
Country Garden is one of the few prominent private developers to avoid default. On Monday, the group issued a profit warning for the first half of 2023, citing “impairments for property projects” amid the “downward trend of real estate sales”. The company said it would reduce expenses and “actively seek guidance and support from the government and regulatory authorities”.
Shares and bonds in Country Garden have come under pressure recently due to liquidity concerns, and investors were worried about further contagion in a sector that has already seen many firms default. The shares are slumping nearly 7% in Hong Kong.
