Country Garden Secures Backing For $14.1B Offshore Debt Overhaul

Just a few days after China Evergrande Group exited the Hong Kong stock exchange after defaulting on $45 billion in obligations, another struggling Chinese property giant had happier news as Country Garden Holdings announced a deal with creditors. 

The developer, which had defaulted on $14.1 billion in debt, informed the Hong Kong bourse on Monday that it has reached a restructuring agreement with banks holding 49 percent of its syndicated loans.

Country Garden added that holders representing over 77 percent of its bonds by value have accepted a restructuring proposal, surpassing the 75 percent threshold required for approval. 

Once China’s largest developer, Country Garden defaulted on $11 billion in offshore bonds in late 2023 and continues to face a liquidation petition, with a court hearing scheduled for January 2026. The developer said it is working closely with bond holders and bank creditors with the goal of finalising the restructuring deal by the end of the year.

Slump Goes On

Country Garden’s deal comes after China home prices continued a four year decline during the first half of 2025, according to industry data.

In July average home prices across China fell 0.3 percent from a month earlier, slowing their rate of decline from June, but still down 2.8 percent from the same period in 2025, according to data from the country’s National Bureau of Statistics. 

From January through July of this year Country Garden’s contracted sales plunged to RMB 19.5 billion – a decline of 33.6 percent from the same period in 2024.

Goldman Sachs said in a report released in June that demand for new urban homes in China during the coming years will likely remain at around 25 percent of the market’s 2017 peak, due to falling population, slowing urbanisation, and the spectre of falling asset values. 

The bank anticipates that China’s property slump could extend into 2027 with home prices falling another 10 percent.