Country Garden says founder has not fled

Country Garden (2007) clarified yesterday that contrary to rumors, its founder Yang Guoqiang and his daughter Yang Huiyang, who serves as the company's chair, have not departed mainland China.

Additionally, the company is actively exploring the sale of its project in Australia.

Four years after Chinese property giant Country Garden launched a A$2 billion (HK$9.88 billion) development of 3,600 homes an hour's drive southwest of Sydney, the outer suburban site remains a sparse field with fewer than 50 houses under construction.

Additionally, the developer's bondholders are said to be forming groups and seeking urgent talks with the troubled property developer after it missed a US$15 million (HK$117 million) coupon repayment, putting it at risk of default.

Ratings agency Moody's said it could downgrade Country Garden's corporate family rating if the recovery prospects for its creditors weaken further.

Meanwhile, Shimao's (0813) chair was reported to be selling a cattle farm in Australia for A$250 million, according to mainland media. Shimao responded that the deal has nothing to do with the company and is handled by the family office.

Elsewhere, China Overseas Grand Oceans (0081) dipped 2.6 percent per share to HK$2.57 on its disappointing results for the first three quarters.

The Chinese developer saw its operating profit for the first three quarters slump by 23.5 percent yearly to 4.28 billion yuan (HK$4.6 billion).

And new home prices in China fell 0.2 percent monthly but narrowed from a 0.3 percent drop in August, according calculations based on National Bureau of Statistics data.

Prices were down 0.1 percent from a year earlier, matching August's decline. Centaline Property's chief executive in mainland China Andy Lee said the home prices have stabilized and are close to the bottom, but there is insufficient momentum to rally.