Contagion Fears Spread as China Property Sector Cash Crunch Intensifies

Contagion Fears Spread as China Property Sector Cash Crunch Intensifies
The company logo of Chinese developer Country Garden at the Shanghai Country Garden Center in Shanghai on Aug. 9, 2023. Aly Song/Reuters
Reuters
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HONG KONG/BEIJING—China’s largest private real estate developer Country Garden is seeking to delay payment on a private onshore bond for the first time, the latest sign of a stifling cash crunch in the property sector.

Adding to worries about contagion risk, a major Chinese trust company that traditionally had sizable exposure to real estate, Zhongrong International Trust Co., has missed its repayment obligations on some investment products.