China’s largest private-sector developer, Country Garden (02007.HK), was recently downgraded from investment level due to its sluggish cash flow, closing to a debt default. The real estate giant has launched several rounds of self-help efforts since last year, including cutting the annual salary of its founder by 97 percent.
HSBC Research in an October report downgraded Country Garden’s rating from “buy” to “hold,” in the light of its cash flow dramatically slowing down and financing pressure further escalating in the future, Hong Kong-based Oriental Daily News reported on Oct. 28.
