Why this company's financial crisis threatens China's economy

HONG KONG: Country Garden, a Chinese real estate giant, has lost billions of dollars and racked up $200 billion in unpaid bills..

Now experts fear that Country Garden's troubles will spill over into the broader financial markets, thwarting any possible recovery of the real estate industry and spreading the damage through the economy..

A year ago, Country Garden was a model corporate citizen in an expanding universe of delinquent real estate companies that borrowed recklessly and then stopped paying their bills...

All of this has led to worries that Country Garden will end up like China Evergrande, a real estate behemoth that collapsed in 2021 and set off panic in global markets...

"The Country Garden default could be as influential as Evergrande simply because it is so huge," said Rosealea Yao, a real estate analyst at Gavekal, a China-focused research firm...

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