Country Garden shares hit record low after profit warning as debt fears loom

Shares of beleaguered Chinese existent property institution Country Garden Holdings slumped to an all-time debased connected Friday arsenic the institution issued a nett informing a time earlier.

The banal fell to an intraday debased of 90 Hong Kong cents, extending the company's losing streak aft 8 sessions of losses successful the past 9 days. This included a 14.3% plunge connected August 8.

The sell-off successful Country Garden shares besides spilled implicit to the wider spot sector.

The broader Hang Seng Mainland Property Index was 1.49% little successful day commercialized connected Thursday. Shares of counterpart Longfor Group were down 1.9%, portion China Resources Land saw its shares descent astir 1%.

In a filing to the Hong Kong exchange, the institution said it expects a grounds a nett nonaccomplishment of astir 45 cardinal yuan to 55 cardinal yuan (or astir $6.24 cardinal to $7.63 billion) for the six months ended June. That's compared with the 1.91 cardinal yuan nett for the aforesaid play past year.

Country Garden said it's "mainly owed to the alteration successful gross nett borderline of the existent property concern and the summation successful impairment of spot projects arsenic a effect of the diminution successful income successful the existent property industry."

Expected overseas speech losses besides contributed to the driblet successful nett income, it said.

Attributable income from January to July is estimated to travel successful astatine 140.8 cardinal yuan ($19.51 billion) —that's a year-on-year alteration of 35%, and a 61% driblet compared to the aforesaid play successful 2021.

Earlier this week, Country Garden saw a sell-off after reports said the existent property steadfast had missed 2 enslaved coupon payments totaling $22 cardinal implicit the weekend.

An capitalist relations typical for Country Garden did not contradict the media reports, but besides did not clarify the company's outgo plans, according to Sandra Chow, co-head of Asia Pacific Research for CreditSights, which is simply a portion of Fitch Group.

— CNBC's Evelyn Cheng contributed to this report