CHINA: What is Country Garden and Why Does It Matter?

Country Garden matters because if its bankruptcy is signaling renewed turmoil in the Chinese housing market, then that will require another bailout from the Chinese government

What is Country Garden and Why Does It Matter?

Country Garden matters because if its bankruptcy is signaling renewed turmoil in the Chinese housing market, then that will require another bailout from the Chinese government (the government will not allow a disorderly real estate market crash).

Concerns about the solvency of Chinese property firm Country Garden weighed on global markets yesterday as the company tee-tered on the brink of bankruptcy and that reminded global inves-tors that 1) The world’s second largest economy is facing real con-traction risks and 2) China appears to still be dealing with a stressed property market years after the collapse and bailout of commercial real estate firm Ever-grande.