China's Property Giant Country Garden Struggling with Debts and Failed Deliveries, Faces Record Lawsuits Amid Economy Recovery Efforts

Property giant, once seen as a beacon in China's real estate sector, not only faces record 459 lawsuits over delayed construction and missing payments, but also potential insolvency as its financial strains reveal an inability to reimburse contractors and deliver completed housing projects amid the country's economic recovery efforts.

China's largest developer, Country Garden, started struggling to deliver property construction and pay its contractors on time months before it publicly acknowledged its financial issues.
The company was once seen as a stronghold in China's real estate sector amid ballooning debt, tougher regulations and fall in sales. It had an implicit guarantee from the state and was one of the few developers able to issue state-guaranteed onshore bonds last year and receive bank credit lines in early 2023.
Examples of Country Garden's earlier financial strains include lawsuits over delayed construction, missing payments and undisclosed liabilities that have jumped to a record 459 cases this year.
The company has liabilities of around $190 billion and more than 3,000 projects under development. Some suppliers and contractors have been partially paid with apartments or not at all, contributing to its financial instability.
Despite its debt crisis, Country Garden has emphasized that delivering homes remains its top priority. It reportedly completed around 460,000 units in the first 10 months of 2023.

South China Morning Post