Chinese property developer Country Garden aims to resume trading on the Hong Kong Stock Exchange (HKEX) after a halt in April 2023 due to financial reporting delays and USD 11 billion (INR 82,500 crore) in defaulted offshore bonds. The HKEX requires Country Garden to publish all outstanding financial results and demonstrate compliance with operational and asset standards. The company, finalising its 2023 fiscal statements with auditors, is also undergoing debt restructuring and working with advisory firm Kroll. A recent petition for liquidation was adjourned until July, providing additional time to address financial challenges and potentially avoid liquidation.
Country Garden, a Chinese property developer facing financial difficulties, is working towards resuming trading of its shares on the Hong Kong Stock Exchange (HKEX). Trading was halted in April 2023 due to outstanding financial reports and USD 11 billion (INR 82,500 crore) in defaulted offshore bonds.
The HKEX has requested that Country Garden publish all outstanding financial results, including any required audit adjustments, before trading can resume. The company is currently finalising its consolidated financial statements for the 2023 fiscal year, in close communication with its auditors.
Country Garden has been facing financial difficulties due to the struggling Chinese property market. The company defaulted on USD 11 billion of offshore bonds in 2023 and is currently undergoing a complex debt restructuring process.Additionally, they have been working with Kroll, a financial and risk advisory firm, to conduct an independent analysis of their financial situation.
The HKEX also requires Country Garden to demonstrate compliance with a key listing rule. This rule mandates that companies maintain a minimum level of operations or assets to remain listed on the exchange. Country Garden will need to show the HKEX they meet this requirement to resume trading.
Earlier in June, a petition filed in the Hong Kong High Court seeking Country Garden's liquidation was adjourned until July. This development provides the company with additional time to address its financial challenges and potentially avoid liquidation.
Country Garden is actively working with its auditors, creditors (including a group of bondholders and bank lenders), and advisors to overcome its financial hurdles. Resuming trading on the HKEX would be a significant step forward for the company. The success of the debt restructuring process and the company's ability to meet listing requirements will be crucial in determining its long-term future.
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