Country Garden Holdings cancelled a HK$2.34 billion (US$300 million) share placement, IFR reported, citing a message sent to investors, the latest setback for one of China’s largest private-sector developers.
The primary share placement was cancelled shortly after midnight, sole bookrunner JPMorgan Chase told investors, according to the report. Earlier, IFR said Country Garden was offering 1.8 billion shares at a fixed price of HK$1.30 apiece.
Country Garden warned of a net loss in the first half due to declining profit margins and impairments. Once considered a safer investment among developers, the company has become a proxy for financial contagion in an industry that accounts for about a quarter of the country’s gross domestic product.
