HONG KONG -- Last month, China's Communist Party Politburo raised the hopes of investors in the nation's beleaguered property sector, issuing a pronouncement at the end of its July meeting that was widely interpreted as a sign of potential support for distressed developers.
Last week, the good feeling melted away as Country Garden Holdings, one of the largest Chinese developers by revenue, said it had missed an August 7 deadline for making $22.5 million in coupon payments on two U.S. dollar-denominated bonds. If the company fails to pay investors by the end of a 30-day grace period, it will be in default on the securities, each with a face value of $500 million.
