Country Garden News

PwC) has resigned as its auditor following the property developer's recommendation, making it the latest Chinese company to sever ties with the troubled auditing firm. PwC has been in trouble over its role in auditing China Evergrande Group since the developer was accused in March of a $78-billion fraud, resulting in an exodus of clientele, cost cuts and layoffs. Country Garden has appointed Hong Kong-based Zhonghui Anda CPA as its new auditor, at least until the conclusion of its next annual general meeting, it said. «PwC is unable to fulfill the timetable requirements of the company for the publication of the audited consolidated financial statements for the year ended 31 December 2023 considering recent relevant matters,» Country Garden said in an exchange filing.

By Marc Jones, Xie Yu and Scott Murdoch

By Marc Jones, Xie Yu and Scott Murdoch

By Scott Murdoch and Clare Jim

(Reuters) — Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden, the nation's biggest private property developer, four people familiar with the plan told Reuters.

(Reuters) — Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden, the nation's biggest private property developer, sources said.

Chinese property developer Country Garden has warned it cannot meet deadlines to repay its loans as the company struggles to restructure its debts

World shares are higher after Wall Street advanced on potentially encouraging news about interest rates, which have been dragging markets lower since the summer

Country Garden said Tuesday that it did not expect to meet all of its offshore payment obligations in time as it edges towards a potential default. Country Garden — one of China's biggest property developers — had racked up debts estimated at 1.43 trillion yuan ($196 billion) by the end of 2022. Its cash flow problems have ignited fears that it could collapse with consequences for China's economy, which is already suffering from record-high youth unemployment, flagging consumption and a broader crisis in the real estate sector. Country Garden, which was already formally at risk of default in September, last month repaid $22.5 million in interest on loans at the last minute during a 30-day grace period. It then negotiated the rescheduling of several repayments with creditors, with several more deadlines looming over the coming weeks. The firm said Tuesday it had missed a payment of HK$470 million ($60 million).

China's housing crisis is deepening as Country Gar... moreChina's housing crisis is deepening as Country Garden, a major homebuilder, missed coupon payments, causing panic among households.

Country Garden Holdings posted a record first-half loss of almost $7 billion and warned it may default on its debt, underscoring how China's deepening real estate slump has battered one of its former property giants. Country Garden said that if its financial performance continues to deteriorate, the group might not be able to fulfill its debt obligations, «which may result in default,» according to a filing Wednesday. The developer also cited «material uncertainties» that may cast «significant doubt on the group's ability to continue as a going concern.» The warnings highlight how China’s deepening real estate crisis has battered one of its property giants.

By Clare Jim

By Wayne Cole

China has been synonymous with relentless development and upward mobility. As its 1.4 billion people gained an appetite for the wares of the world — Hollywood movies, South Korean electronics, iron ore mined in Australia — the global economy was propelled by a seemingly inexhaustible engine. Now that engine is sputtering, posing alarming risks for Chinese households and economies around the planet.