How do the reported financial figures of Evergrande and Country Garden compare?

回答於 : 2024-07-12

參考資料

COUNTRY GARDEN HOLDINGS COMPANY LIMITED

countrygarden.com.cn

China property crackdown: why surprise victim Country ...

scmp.com

Country Garden Reports Preliminary May 2024 Sales | Nasdaq

nasdaq.com

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完善答案

The financial figures and situations of Evergrande and Country Garden provide a stark comparison in the current landscape of China's property market.

1. **Debt Load and Liabilities**:

- **Evergrande**: Evergrande held liabilities amounting to approximately $340 billion at the time of its collapse in 2021[4].

- **Country Garden**: As of the latest reports, Country Garden has comparable liabilities totaling around $200 billion[4].

2. **Impact and Market Footprint**:

- **Evergrande**: The collapse of Evergrande triggered a series of defaults within China's property sector, significantly impacting stock and bond investors[2].

- **Country Garden**: Despite having a lower debt load than Evergrande, Country Garden has a larger footprint, especially in lower-tier cities, which could potentially cause broader economic disruptions in China[2]. Analysts at JPMorgan highlight that Country Garden faces significant financial challenges, including $2.5 billion in coupon repayments and bond maturities by year-end 2024[2].

3. **Recent Financial Performance**:

- **Evergrande**: Details on Evergrande's recent financial performance were not explicitly mentioned, but the company's earlier collapse indicates severe financial distress.

- **Country Garden**: Country Garden's recent financial updates indicate reported contracted sales of approximately RMB 4.29 billion for May 2024[3]. However, the company is also grappling with issues such as non-payment of a $205 million loan, leading to a liquidation petition filed against it[6].

4. **Market Reactions and Investor Confidence**:

- **Evergrande**: The high-profile default of Evergrande led to a loss of confidence among investors, with steep losses in local and foreign-currency bonds[2].

- **Country Garden**: Investors are cautious, given the uncertainties around Country Garden's financial stability. The company has advised against placing undue reliance on preliminary sales figures for trading decisions[3], and dollar bondholders have reported missed coupon payments, further shaking investor confidence[5].

5. **Overall Economic Impact**:

- **Evergrande**: Its collapse had a ripple effect on the broader Chinese property sector, leading to a significant number of defaults and impacting economic stability.

- **Country Garden**: With a wider operational footprint and ongoing financial obligations, Country Garden faces the potential to inflict even greater damage on the economy than Evergrande[2].

In summary, while Evergrande's collapse marked a significant shock to the market with its higher debt load, Country Garden's wider influence and ongoing financial missteps suggest it could have an even larger impact on China's economy despite its relatively lower liabilities.