Chinese real estate developer Biguiyuan (Country Garden) reportedly failed to pay interest on its yuan-denominated bonds within the region, according to local media.
On the 13th, local media such as China’s Pengpai and Daily Economic News reported that Biguiyuan disclosed it had not paid investors the total interest of 96 million yuan (approximately 17.5 billion KRW) that was due by the previous day. However, a 30-day grace period for this payment is still in effect.
A company representative explained, "As of the announcement date, Biguiyuan plans to pay the interest on the 21st due to factors such as underwhelming sales recovery and capital allocation pressures." They added, "We will do our best to raise funds within the grace period by normalizing operations, activating assets, and reducing unnecessary administrative expenses."
As of the 7th, Biguiyuan succeeded in listing 237 projects across 25 provinces in China on the whitelist and received financial support amounting to 1.552 billion yuan. On the 4th, Yang Huiyan, Chairwoman of Biguiyuan, stated at the monthly group management meeting that the company would actively secure funding with support from the government and financial institutions to ensure deliveries and operations. However, according to corporate disclosure data, the company’s contracted sales last month dropped 85% year-on-year, a larger decline compared to the previous month (January: 75%).
Locally in China, there is growing attention on whether major real estate companies will face expanding insolvency and defaults. China’s second-largest real estate firm, Vanke, is reportedly discussing debt swaps with major creditor banks amid pressure to repay debts. According to Wind data, as of the 4th, Vanke has a total of 75 outstanding domestic and international bonds with a balance of 87.2 billion yuan. Among these, 47 bonds (approximately 32.6 billion yuan) will mature within one year. If the maturity is accelerated to the first half of this year, a total of 16 bonds will mature, amounting to about 15 billion yuan.
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