Still, liquidity has been under “a lot of pressure,” and “we can’t rule out the default,” says Warut Promboon, a Hong Kong-based managing partner at research firm Bondcritic. Ultimately, survival “depends on upcoming support from the government and state-influenced banks,” he says.
Together, they are responsible for steering a business the elder Yeung founded in 1992, and grew by offering residences outside major urban centers. Country Garden’s strategy enabled it to grow quickly with lower costs in terms of acquiring land sites. After taking over, his daughter The main property operation, in the meantime, has said it will “actively seek guidance and support from the government and regulatory authorities,” according to a separate
But many other large developers, such as China Evergrande Group, have already defaulted on earlier debt obligations. In fact, even the state-linked real estate companies, like Sino-Ocean Group Holding, have recently missed payments andShen Meng, managing director of Beijing-based boutique investment bank Chanson & Co., says there is a possibility that officials might pressure Yang to use her own money to pay down the company’s debt.