China's Country Garden Once Again Makes the Market Anxious!

<p>&nbsp;Investors in the Asian session faced a thrilling moment following the Chinese real estate giant, Country Garden, which almost experienced 'default' due to its debt crisis.</p><p><br /></p><p>As INTRADAY reported on Monday, the real estate giant has obtained an extension for bond payments amounting to 3.9 billion yuan ($540 million) on Saturday.</p><p><br /></p><p>However, another crisis hit Country Garden which faced a deadline to make interest payments on two different US dollar bonds today.</p><p><br /></p><p>It is understood that the property developer missed the coupon payment in early August, where the 30-day grace period ends today and tomorrow (September 5 and 6).</p><p><br /></p><p>This has triggered market concerns that have pushed the risk-sensitive currencies of the Aussie dollar and the New Zealand dollar to record significant declines in the Asian session.</p><p><br /></p><p><br /></p><p>Failure to make the payment will increase the risk of 'default' and other bondholders to accelerate their payments.</p><p><br /></p><p>However, the company eventually managed to pay the interest on the two bonds totaling $22.5 million before the last minute.</p><p><br /></p><p>It indirectly provides some relief for investors, despite the fact that there are still other problems ahead.</p><p><br /></p><p>This is because Country Garden's total liabilities still have a high debt pile of about $194 billion by the end of June, based on its first half financial results.</p>