(Finance) – The title Country Garden Holdings will be removed from Hong Kong’s Hang Seng Index effective September 4. The decision comes after the benchmark’s latest quarterly review.
The shares of the Chinese real estate company will be replaced by the pharmaceutical company sinopharm.
On Monday, August 14, after trading on some of its bonds was suspended, shares of Country Garden fell to an all-time low. The company is on the verge of default and must make some interest payments on the dollar bonds within the usual 30 days, on which it has been in default since last August 6th.
Country Garden, one of China’s largest real estate developers, had announced the suspension of the sale of 11 series of onshore bonds, after failing to honor two bond coupons in dollars worth 22.5 million dollars, in early August.
The announcement came after various Chinese media outlets reported that the company was seeking potential debt restructuring after posting a massive US$7.6 billion loss in the first half of 2023.