Country Garden shares slump after share sale scrapped By Reuters

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<span>© Reuters. FILE PHOTO-The logo of property developer Country Garden is seen on a building in Dalian, Liaoning province, China May 7, 2017. REUTERS/Stringer/File Photo</span><br />
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<p>HONG KONG (Reuters) – Shares of Chinese property giant Country Garden plunged as much as 10.8% in early trading on Tuesday after it scrapped a share placement to raise $300 million.</p>
<p>The firm had cancelled the fund raising plan, people with direct knowledge said, after its launch on Monday night.</p>
<p>Country Garden had planned to sell 1.8 billion shares at HK$1.30 per share, representing a 17.7% discount to Monday’s closing price, a term sheet seen by Reuters showed on Monday.</p>
<p>Country Garden did not immediately respond to a request for comment.</p>
<p>Shares and bonds in Country Garden and its property services arm, Country Garden Services Holdings, have come under pressure recently due to liquidity concerns despite the company signing a dual-tranche loan deal earlier this month.</p>
<p>The home builder warned on Monday that it would post an unaudited net loss for six months ending June 30, compared with a net profit of 1,910 million yuan ($267.31 million) a year earlier. </p>
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