HONG KONG: Shares of Chinese property giant Country Garden plunged as much as 10.8 per cent in early trading on Tuesday after it scrapped a share placement to raise US$300 million.
The firm had cancelled the fundraising plan, people with direct knowledge said, after its launch on Monday night. Country Garden had planned to sell 1.8 billion shares at HK$1.30 per share, representing a 17.7 per cent discount to Monday's closing price, a term sheet seen by Reuters showed on Monday.Shares and bonds in Country Garden and its property services arm, Country Garden Services Holdings, have come under pressure recently due to liquidity concerns despite the company signing a dual-tranche loan deal earlier this month.
The home builder warned on Monday that it would post an unaudited net loss for six months ending Jun 30, compared with a net profit of 1,910 million yuan a year earlier.