Country Garden, China’s largest homebuilder by sales, bought $10 million of its own bonds after the continued issues in the country’s property sector pushed prices down again, reports Reuters. Last week was the worst on record for Country Garden’s bonds and fresh falls of up to 17 points on Monday left most of its international market debt at 25-35% below its face value.
Analysts cited reports that it had dropped plans to raise $300 million last week after debt market investors had shown insufficient appetite. A spokesperson at Country Garden responded to the reports saying the company had no plan to sell a convertible bond at present.
“It just seems to be the fear factor playing out,” said Seaport Global analyst Himanshu Porwal. “People are just marking things down as much as they can.”