Shares in Country Garden fell 4.0% as nerves grew that the company could default on payments as a key deadline looms.
China’s biggest private property developer has until Tuesday to meet coupon payments or have all its nearly $11 billion in offshore debt deemed in default.
Reuters reported it was not alone, with companies accounting for 40% of Chinese home sales defaulting since 2021, when a liquidity crisis hit the sector, which accounts for about a quarter of China's economy.
Beijing has rolled out a raft of measures recently, but with little impact on home sales.
On Friday, Bloomberg reported Country Garden’s founding family had recently provided the developer with an interest-free loan of $300 million, citing local media, a sign of its commitment to the ailing Chinese property giant.
The loan from co-founder Yeung Kwok Keung’s family was reported by The Paper on Friday, citing unidentified people.
Country Garden didn’t comment.