Country Garden is set to pay its chairperson $28 million in dividends. Bondholders are now eyeing her huge $5.3 billion fortune to help the struggling property developer.
And analysts are already trying to get a reading on the underlying messaging from the company's announcement.
"We think this is likely the prelude to an ultimate credit event, and the company might already be in preparation for debt restructuring," JPMorgan Chase analysts wrote in a Friday note responding to the company's announcement. Country Garden's next move will very much depend on Beijing's stance, Iris Chen, an analyst at Nomura, wrote in a Thursday note seen by Insider.
"We believe conversations with the regulator will be important during this period, and the company will make a decision based on the government's attitude, especially as the central government is pushing for property sector easing at the current moment," Chen added.Hong Kong-listed Country Garden Holdings shares are down 6% to 98 Hong Kong cents apiece at last check. They are down 58% so far this year.
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