China’s biggest property developer's profit fell by 96% due to the recession in the property market

China’s biggest property developer, Country Garden Holdings' initial net profit collapsed from 15 billion yuan ($2 billion) to 612 million yuan ($88 million) in the first 6 months of 2022 due to the housing market crisis, which is gradually destroying the Chinese economy.
Country Garden's shares dropped over 70% in 2022 and the stock dropped another 2.3% on Tuesday to HK$2.54.
In 2022, the property sector encountered numerous problems, including the market’s deteriorating expectations, slow demand, and a drop in property prices due to which the market slid rapidly into a severe depression.
China’s property crisis began when Evergrande was unable to meet repayments on the offshore, dollar-denominated part of its massive $300 billion debt, which spread from Evergrande throughout the huge $60 trillion Chinese property market, bringing a 40% drop in sales.

Image: The Guardian

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