Country Garden shares drop 5% after reports it scrapped $300 million share sale

Hong Kong-listed shares of Country Garden fell 5.06% connected Tuesday, pursuing aggregate reports that the Chinese existent property developer had scrapped its $300 cardinal superior stock placement.

The stock placement was aimed astatine helping the Chinese spot developer repay its debt.

Its spot services arm Country Garden Services mislaid 0.57%, portion different Chinese spot stocks were besides dragged down. The Hang Seng Mainland Property Index, which measures Hong Kong-listed Chinese spot counters, was little by 0.33%.

Logan Group fell 4.21%, portion China Vanke shed 0.73%. Sunac fell astir 2%.

In different setback for China's embattled spot sector, Country Garden reportedly canceled its stock placement soon aft midnight, according to IFR which archetypal reported the news, citing bookrunner JPMorgan.

Primary stock placements impact buying of caller shares done caller issuances. According to Reuters, the placement comprised of 1,800 cardinal institution shares astatine HK$1.30 per stock — which represented a 17.7% discount to the closing terms connected Monday.

Country Garden is 1 of the largest spot developers successful the mainland.

Just past week, JPMorgan downgraded Country Garden and Country Garden Services to underweight, and much than halved the people terms of Country Garden and its spot services listing.

China's spot assemblage is grappling to retrieve from a recognition situation pursuing the government's crackdown connected its indebtedness levels successful 2020.

— CNBC's Clement Tan contributed to this report.