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China’s Top Developer Sees Profits Plunge 96% – Guardian

The building industry faces multiple threats such as “sluggish demand, weakening expectations and falling prices,” Country Garden said.


Country Garden suffered a 96% fall in profit in the first half of 2022.
Debt contagion has spread from defaults by Evergrande and other heavily indebted builders throughout the huge $60tn Chinese property market, bringing a 40% drop in sales, falling prices, and a mortgage strike by homeowners angered by the non-completion of homes for which they had paid upfront. Photo: Country Garden.

 

China’s largest property developer Country Garden said its profits have dropped 96% amid a sector crisis it described as a “severe depression” and one that “only the fittest can survive,” The Guardian reported, noting that the company has thousands of projects in nearly 300 municipalities.

Net profits plunged from $2 billion to $88 million in the first half of the year, according to the developer, which said the construction sector had been ravaged by “sluggish demand, weakening expectations and falling prices.”

Read the full report: The Guardian.

 

 

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China Economy Falters as Factory, Property, Job Woes Mount

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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.

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