HONG KONG (Reuters) – Shares in China’s Country Garden fell more than 12 percent on Monday morning after the real estate company suspended trading in 11 of its internal bonds, effective Monday.

The stock hit a new low of HK$0.86, after reports on Friday that the company was heading for a debt restructuring added to concerns about a deteriorating outlook in the real estate sector.

Markets are nervous with more developers defaulting on bond payments amid no signs of stronger support measures from Beijing.

Country Garden last week defaulted on two dollar bond coupons due Aug. 6 totaling $22.5 million, confirming market fears that the developer was slipping into payment problems.

In separate filings over the weekend, the company said the resumption of trading in its internal bonds would be set at a later date.

(Reporting by Claire Gem; Editing by Muralikumar Anantharaman and Jacqueline Wong)

Leave a Reply

Your email address will not be published. Required fields are marked *