China's Country Garden suffers record $6.7bn loss as business model falters

Strategy of linking schools with residential developments hurt by clampdown

Country Garden is the latest big Chinese property group to have its struggles with weak cash flow emerge. © Reuters

YUSUKE HINATA and NORIYUKI DOI, Nikkei staff writers

August 31, 2023 02:14 JST

GUANGZHOU/SHANGHAI -- Top Chinese property developer Country Garden Holdings on Wednesday reported a record net loss of 48.9 billion yuan ($6.71 billion) for the six months through June, a new sign of how its strategy of building homes and schools together has crumbled under government pressure.