By Jiahui Huang


Country Garden Holdings said that it is likely to default on a government-guaranteed local bond, as the property developer continued to struggle with liquidity amid China's property crisis.

The heavily indebted Chinese property developer Thursday said it couldn't meet the deadline for an interest payment of 35.55 million yuan ($4.9 billion) on a CNY900 million bond due the same day.

Country Garden Holdings said it would "try their best" to make interest payments no later than May 13, within the grace period of five working days after the due date.

"Due to the continuous volatility of the industry, the operating environment the group facing has become increasingly complex and tough," the company said, adding the recovery in sales was weaker than expected and that it was hard for the company to allocate funds to the interest payment.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

05-09-24 0053ET