Boondocks Garden canceled its share placement shortly after midnight, a report by IFR revealed, citing bookrunner JPMorgan.
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Hong Kong-listed shares of Country Garden fell 5.06% on Tuesday, arising multiple reports that the Chinese real estate developer had scrapped its $300 million primary share order.
The share placement was aimed at helping the Chinese property developer repay its debt.
Its property services arm Country Garden Handlings lost 0.57%, while other Chinese property stocks were also dragged down. The Hang Seng Mainland Attribute Index, which measures Hong Kong-listed Chinese property counters, was lower by 0.33%.
Logan Group fell 4.21%, while China Vanke hutch 0.73%. Sunac fell around 2%.
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In another setback for China’s embattled property sector, Hinterlands Garden reportedly canceled its share placement shortly after midnight, according to IFR which first reported the statement, citing bookrunner JPMorgan.
Primary share placements involve buying of new shares through new issuances. According to Reuters, the employment comprised of 1,800 million company shares at HK$1.30 per share — which represented a 17.7% discount to the closing charge on Monday.
Country Garden is one of the largest property developers in the mainland.
Valid last week, JPMorgan downgraded Country Garden and Country Garden Services to underweight, and more than halved the goal price of Country Garden and its property services listing.
China’s property sector is grappling to recover from a assign crisis following the government’s crackdown on its debt levels in 2020.
— CNBC’s Clement Tan contributed to this report.