Country Garden stock falls after Chinese developer cancels share placement
One of China’s biggest property developers has abruptly abandoned a share placement, sending its stock down as much as 10 per cent on Tuesday and renewing concerns about the troubled real estate sector.
Country Garden, one of the country’s largest developers and a barometer of the sector’s health, decided to cancel a $300mn share placement on Monday night, two people briefed on the situation said. A successful placement would have been a rare new capital markets deal in a sector starved of investment. JPMorgan was the sole bookrunner.
“Due to inconsistency in communications with various parties, the company hasn’t managed to sign off the final agreement on a proposed [share placement] plan,” Country Garden said in a statement sent to the Financial Times on Tuesday. “The company is also not considering the deal at the current stage.”