By Jiahui Huang
Country Garden Holdings' shares rose as they resumed trading in Hong Kong following a nine-month suspension, after the Chinese property giant pledged to reach a debt-restructuring deal with creditors.
Shares in the company, once one of China's largest developers, jumped as much as 30% early Tuesday. It was 24% higher at 60 Hong Kong cents, or about 8 U.S. cents, by midday, still near historical lows.
Other Chinese property stocks also rose, helping the Hang Seng Mainland Properties Index gain 2.2%. China Vanke's Hong Kong-listed shares advanced 13% and Shimao Group was 5.4% higher.
Trade in Country Garden's stock resumed after the company said it fulfilled requirements under the resumption guidance. It published delayed financial results last week, reporting a net loss of about US$1.75 billion for the first half of 2024 after a record loss of more than US$24 billion in 2023.
The heavily indebted property developer also provided various plans and measures to ease the liquidity pressure and improve its financial condition, including negotiating with bondholders of around 18.0 billion yuan of domestic debt, equivalent to US$2.46 billion, to extend maturity dates.
Country Garden said it is also in talks with financial institutions and bondholders for 28.7 billion yuan of onshore loans, 3.5 billion yuan of offshore loans and 0.7 billion yuan of offshore bonds for loan extension or restructuring agreements, according to Tuesday's filing.
At a Hong Kong court hearing Monday, the developer said it expects to reach an agreement with creditors next month, according to media reports. The winding-up petition hearing was adjourned to May 26, the company said in a filing.
China's property sector has seen signs of stabilization after a swath of stimulus measures from Beijing over the past year, including the easing of home-buying curbs, mortgage-rate cuts, and expansion of a project for home builders to access loans.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
January 21, 2025 00:03 ET (05:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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