Embattled Country Garden Holdings resumes trading

This comes after a halt in trading for more than nine months.

Country Garden Holdings, one of China’s largest property developers, has resumed trading on the Hong Kong Stock Exchange after addressing regulatory compliance issues, according to a bourse filling.

The company’s trading was suspended since 2 April, pending the publication of its 2023 full-year report and 2024 interim financial reports after it defaulted on its US$11b of offshore bonds late 2023.

For the year ended 31 December 2023, the group’s audited total revenue amounted to $429.45b (RMB401b). The group also reported a gross loss of $100.24b (RMB93.6b) and a net loss of $215.26b (RMB201b) in 2023

Country Garden's loss was primarily driven by three factors: a significant impairment provision for properties under development and completed properties due to the downturn in the real estate market and asset value declines; impairment losses related to adverse macroeconomic conditions and counterparties' financial difficulties; and high operational costs, including selling, administrative, and finance expenses, along with other net losses.

In a separate release, the group also reported that the Hong Kong court adjourned a liquidation petition hearing against Country Garden until 26 May after the company revealed its restructuring proposal earlier this month.