Bad News From China, This Property Company is in Danger!

<p>&nbsp;Country Garden Holdings, China's largest property developer, will be 'kicked out' from Hong Kong's Hang Seng index on September 4.</p><p><br /></p><p>The decision was made following the benchmark's latest annual quarterly review, at which point it will be replaced by pharmaceutical firm Sinopharm.</p><p><br /></p><p>In addition, the estate management firm and joint venture experts Country Garden will also be excluded from the Hang Seng Index China Enterprises which will be replaced by online travel agency Trip.com.</p><p><br /></p><p>The Hang Seng China Enterprises Index serves as a benchmark that reflects the overall performance of major land security listings in Hong Kong.</p><p><br /></p><p>The report is a new 'slap' to China's struggling property sector, coupled with news that the giant Evergrande property failed to protect banks in the United States last week.</p><p><br /></p><p><br /></p><p>So far this year, Country Garden shares have fallen more than 70% to hit a low after the company reportedly defaulted on coupon payments.</p><p><br /></p><p>Country Garden now has less than 30 days to make the coupon payment released August 7 on a two-dollar coupon bill worth $22.5 million.</p><p><br /></p><p>Meanwhile, the Central Bank of China (PBOC) unexpectedly kept its five-year prime lending rate (LPR) at 4.20%, and reduced the one-year LPR by 10 base points to 4.45%.</p><p><br /></p><p>Following the PBOC's actions which were seen as not quite dovish, financial markets moved mixed in the Asian session.</p>