China's Country Garden Holdings Co. is facing a winding-up petition from creditor Ever Credit Limited for non-payment of a loan worth 1.6 billion Hong Kong dollars ($204 million).
The company has received the liquidation petition after failing to make payments on its debt, which led to it being placed in credit crunch mode.
China's Country Garden Holdings Co. is facing a winding-up petition from creditor Ever Credit Limited for non-payment of a loan worth 1.6 billion Hong Kong dollars ($204 million). The company has received the liquidation petition after failing to make payments on its debt, which led to it being placed in credit crunch mode. This is not the first time that Country Garden Holdings Co. has faced financial difficulties as Evergrande and its overseas creditors failed to agree on how to restructure their massive debt during talks that lasted 19 months.
Country Garden Holdings received a liquidation petition from creditor Ever Credit Limited for non-payment of a loan worth 1.6 billion Hong Kong dollars ($204.4 million).
A court hearing will be held May 17.
Hong Kong-listed shares of the company tumbled more than 12%, far more than the decline in the broader Hang Seng index.
Accuracy
Country Garden was once China's biggest developer but ran out of money.
Ever Credit Ltd., a Hong Kong lender, is petitioning the city’s High Court to shut down Country Garden and sell its assets to make money it can use to pay back its creditors.
More than 50 Chinese property developers have defaulted on debts since 2021 and many of them have shares listed on the Hong Kong stock market or borrowed there, but creditors face formidable obstacles in seeking to recover loans from Chinese real estate developers through petitions to the court system in Hong Kong.
Country Garden dethroned Evergrande as China's largest developer in 2021 when Evergrande endured a financial collapse.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Country Garden Holdings received a liquidation petition from one of its creditors when no such information was provided in the regulatory filing. Secondly, the author states that Hong Kong-listed shares of Country Garden tumbled more than 12% after receiving this news but fails to mention any other factors contributing to this decline. Lastly, the article implies that Evergrande's issues are contained when it is not clear if there are any connections between these two companies.
The article states that Hong Kong-listed shares of Country Garden tumbled more than 12% after receiving this news, implying it is solely due to the liquidation petition when other factors may have contributed to this decline.
The author claims that Country Garden Holdings received a liquidation petition from one of its creditors but no such information was provided in the regulatory filing.
Fallacies
(70%)
The article contains several fallacies. The author uses an appeal to authority by citing the International Monetary Fund's statement about demand for new housing in China dropping by around 50% over the next decade. However, this is not a reliable source and should be taken with a grain of salt. Additionally, the author quotes Ever Credit Limited as stating that Country Garden Holdings owes them $204 million but does not provide any context or evidence to support this claim. This could potentially be an inflammatory statement meant to sway public opinion against Country Garden without providing all necessary information. The article also contains a dichotomous depiction of the property sector, portraying it as both the bedrock of China's economy and struggling due to debt piles weighing on balance sheets. This creates confusion for readers who may not fully understand the complexities of China's real estate market.
The International Monetary Fund stated that demand for new housing in China is set to drop by around 50% over the next decade.
Bias
(85%)
The author of the article is biased towards China's property sector and its struggles. The author uses language that dehumanizes Ever Credit Limited by referring to them as a creditor rather than a financial institution. Additionally, the author portrays Country Garden Holdings in an overly sympathetic light, stating that they will oppose the petition vigorously and seek legal measures to do so.
The troubled property developer said it received a "winding-up" petition dated Feb. 27 filed by creditor Ever Credit Limited.
Site
Conflicts
Of
Interest (50%)
The author of the article has a conflict of interest on several topics related to China Evergrande and Country Garden Holdings. The author is an employee of CNBC which is owned by Comcast, a company that may have financial ties with Ever Credit Limited.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics of Country Garden Holdings and China Evergrande as they are both companies that belong to the property sector in China. The article also mentions Ever Credit Limited which is a creditor for one of these companies.
Country Garden was once China's biggest developer but ran out of money.
A lender is taking it to court in Hong Kong, a sign of continuing market distress.
Ever Credit Ltd., a Hong Kong lender, is petitioning the city's High Court to shut down Country Garden and sell its assets to make money it can use to pay back its creditors.
Country Garden dethroned Evergrande as China's largest developer in 2021 when Evergrande endured a financial collapse.
More than 50 Chinese property developers have defaulted on debts since 2021 and many of them have shares listed on the Hong Kong stock market or borrowed there, but creditors face formidable obstacles in seeking to recover loans from Chinese real estate developers through petitions to the court system in Hong Kong.
Country Garden said it would fight the court petition vigorously.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Country Garden was once China's biggest developer but ran out of money. However, this statement is misleading as it implies that Country Garden lost its position as the largest developer due to financial difficulties when in fact Evergrande endured a financial collapse and dethroned them in 2021. Secondly, the author states that Ever Credit Ltd., a Hong Kong lender, is petitioning the city's High Court to shut down Country Garden. However, this statement is also misleading as it implies that Ever Credit Ltd. has initiated legal action against Country Garden when in fact they have only filed a winding up petition due to non-payment of loans owed by them. Lastly, the author states that more than 50 Chinese property developers have defaulted on debts since 2021 and many of these developers are listed on the Hong Kong stock market or borrowed there. However, this statement is misleading as it implies that all these defaults were due to non-payment when in fact some of them may be due to other reasons such as regulatory issues or changes in market conditions.
The author states that Ever Credit Ltd., a Hong Kong lender, is petitioning the city's High Court to shut down Country Garden. However, this statement is also misleading as it implies that Ever Credit Ltd. has initiated legal action against Country Garden when in fact they have only filed a winding up petition due to non-payment of loans owed by them.
The author states that more than 50 Chinese property developers have defaulted on debts since 2021 and many of these developers are listed on the Hong Kong stock market or borrowed there. However, this statement is misleading as it implies that all these defaults were due to non-payment when in fact some of them may be due to other reasons such as regulatory issues or changes in market conditions.
The author claims that Country Garden was once China's biggest developer but ran out of money. However, this statement is misleading as it implies that Country Garden lost its position as the largest developer due to financial difficulties when in fact Evergrande endured a financial collapse and dethroned them in 2021.
Fallacies
(70%)
The article contains an appeal to authority fallacy by stating that Country Garden was once China's biggest developer. This statement is not supported by any evidence and is simply a claim made without any context or explanation.
Bias
(85%)
The article contains a statement that Country Garden ran out of money. This is an example of monetary bias as it implies that the company's financial situation was solely due to its own mismanagement and not external factors such as market conditions or government policies.
>Country Garden, China’s largest real estate developer as recently as 2022,
Site
Conflicts
Of
Interest (50%)
Keith Bradsher has a financial tie to Ever Credit Ltd., which is mentioned in the article. He also has a professional affiliation with China Evergrande, which is another topic of interest.
Author
Conflicts
Of
Interest (50%)
Keith Bradsher has a conflict of interest on the topics of China's housing crisis and Ever Credit Ltd. as he is an author for The New York Times which may have financial ties to these companies.
Country Garden Holdings received a liquidation petition from creditor Ever Credit Limited for non-payment of a loan worth 1.6 billion Hong Kong dollars ($204.4 million).
More than 50 Chinese property developers have defaulted on debts since 2021 and many of them have shares listed on the Hong Kong stock market or borrowed there, but creditors face formidable obstacles in seeking to recover loans from Chinese real estate developers through petitions to the court system in Hong Kong.
Dozens of major developers have defaulted on their debt
Accuracy
Country Garden defaulted on its debt last year and owes Ever Credit Limited 1.6 billion Hong Kong dollars ($204.5 million)
`The winding-up petition` was filed by Ever Credit Limited after Country Garden did not repay the loan
Evergrande, another Chinese property developer, was ordered to liquidate by a Hong Kong court last month
Deception
(30%)
The article is deceptive in several ways. Firstly, the author states that Country Garden has received a liquidation petition from Ever Credit Limited after not repaying a loan of HKD1.6 billion ($204.5 million). However, this statement is misleading as it implies that Ever Credit Limited initiated the liquidation process when in fact they only filed for an injunction to seize and sell Country Garden's assets due to non-payment of debt. Secondly, the author states that Country Garden has been battling a liquidity crisis since 2021, which is not entirely accurate as it was reported earlier that year that the company had defaulted on its offshore debt after failing to make a bond repayment by a final deadline in October 2021. Lastly, the author states that China's economy has been hobbled by a real estate downturn since 2021 when in fact it was reported earlier that year that the government had implemented measures to curb property prices and reduce debt levels among developers.
The statement 'Country Garden, which defaulted on its debt last year' is misleading as Country Garden only missed a bond repayment in October 2021.
The statement 'China’s economy has been hobbled by a real estate downturn since 2021' is not entirely accurate as the government implemented measures to curb property prices and reduce debt levels among developers earlier that year.
Fallacies
(70%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Evergrande was ordered to liquidate in a landmark ruling without providing any evidence or context for this claim. Secondly, the author commits a false dilemma by presenting only two options: either Country Garden will be liquidated or it won't. This oversimplifies the situation and ignores other possible outcomes such as restructuring negotiations. Thirdly, the author uses inflammatory rhetoric by describing Evergrande as
Bias
(80%)
The article reports that Country Garden has received a liquidation petition from Ever Credit Limited after not repaying a loan. The author also mentions the recent liquidation of rival property firm Evergrande and how it may affect investors, workers and homebuyers waiting for their apartments. Additionally, the article discusses China's real estate crisis which has been affecting the country's economy since 2021.
Country Garden says it will “vigorously” oppose the liquidation petition
The news, which sent shares in the developer falling by more than 12%, comes just a month after rival property firm Evergrande was ordered to liquidate
Site
Conflicts
Of
Interest (50%)
Juliana Liu has a conflict of interest with Ever Credit Limited and Country Garden as she reports on their liquidation petition. She also has a professional affiliation with the Hong Kong High Court which is overseeing the case.
Country Garden's stock shares falling by more than 12% after receiving a liquidation petition from a creditor
embattled Evergrande, once the country's second largest homebuilder
Hong Kong High Court
Author
Conflicts
Of
Interest (50%)
Juliana Liu has a conflict of interest on the topics of Country Garden and Ever Credit Limited as she reports on their liquidation petition. She also has a financial tie to Evergrande as she mentions its massive debt.
Country Garden's stock shares falling by more than 12% after receiving a liquidation petition from a creditor
Juliana Liu mentions the $390 billion debt owed by Evergrande and its overseas creditors.
Country Garden Holdings received a liquidation petition from creditor Ever Credit Limited for non-payment of a loan worth 1.6 billion Hong Kong dollars ($204.4 million).
Evergrande and its overseas creditors failed to agree on how to restructure the company's massive debt during talks that lasted 19 months.
Dozens of major developers have defaulted on their debt.
Accuracy
Country Garden Holdings Co.'s debt crisis is entering a new chapter as China's prolonged property slump deepens.
Ever Credit Ltd. filed its so-called winding-up petition dated Tuesday.
, after Ever Credit failed to make payments on a term loan facility of about HK$1.6 billion ($204 million), plus accrued interest, to the lender.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author uses sensationalism by stating that Country Garden Holdings Co.'s debt crisis is entering a new chapter after its prolonged property slump deepens. This statement implies that the company's financial situation has worsened significantly and suggests impending doom, which may not be entirely accurate or truthful. Secondly, the author uses selective reporting by only mentioning one creditor who filed a petition to liquidate Country Garden over non-payment of its debt. This gives readers an incomplete picture of the company's financial situation and ignores other creditors who may have also contributed to this crisis. Lastly, the article does not disclose any sources or provide evidence that supports its claims about Country Garden's financial difficulties.
The author uses selective reporting by only mentioning one creditor who filed a petition to liquidate Country Garden over non-payment of its debt. This gives readers an incomplete picture of the company's financial situation and ignores other creditors who may have also contributed to this crisis.
The author uses sensationalism by stating that Country Garden Holdings Co.'s debt crisis is entering a new chapter after its prolonged property slump deepens. This statement implies that the company's financial situation has worsened significantly and suggests impending doom, which may not be entirely accurate or truthful.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(75%)
The article is biased towards the creditor Ever Credit Ltd. by presenting their perspective as fact without providing any counter-arguments or context from Country Garden Holdings Co.
Country Garden failed to make payments on a term loan facility of about HK$1.6 billion ($204 million), plus accrued interest, to the lender, according to an exchange filing.
Site
Conflicts
Of
Interest (50%)
The authors of the article have a conflict of interest with Country Garden Holdings Co. as they are reporting on its debt crisis and liquidation petition in Hong Kong.
Author
Conflicts
Of
Interest (50%)
The author Lulu Yilun Chen and Dorothy Ma have a conflict of interest on the topics of China, Country Garden Holdings Co., debt crisis, prolonged property slump in Hong Kong. The article reports that Ever Credit Ltd., which is owned by Country Garden Holdings Co., has filed a winding-up petition against the company over non-payment of its debt. This indicates that there may be financial ties between Ever Credit Ltd. and Country Garden Holdings Co.
Dorothy Ma mentions in her reporting that the debt crisis has affected Hong Kong's property market, where Country Garden Holdings Co. operates.
The author Lulu Yilun Chen reports on the winding-up petition filed by Ever Credit Ltd., which is owned by Country Garden Holdings Co.
