Country Garden, China's Largest Property Developer, Faces Default Risk and Record Losses

China's largest property developer, Country Garden, has reported a loss of nearly $7 billion for the first half of the year, putting the company at risk of default. The real estate crisis in China, exacerbated by post-pandemic uncertainty and a government crackdown on the sector, has weakened sales and affected broader confidence in the economy. Country Garden's default would pose a significant risk to China's fragile economy and undermine the government's target of 5 percent economic growth this year. The collapse of the company could have ripple effects on new construction, building materials, consumer spending, and banking, but the risk of global contagion is relatively low.