Country Garden Real Estate Group announced it would suspend trading of 10 local bonds starting next Monday, just two days after its parent company revealed billions of dollars in losses for H1 2023, Invest-Gate reports.

The company, formerly the largest Chinese property developer by sales, stated that it would suspend trading of six company bonds denominated in yuan issued in 2021 and 2022, starting from the market opening, according to filings from the Shenzhen Stock Exchange on Saturday night.

The trading suspension also includes three other corporate bonds listed on the Shanghai Stock Exchange, according to filings on the Chinese bourse. Guangdong Tengyue Construction Engineering, a subsidiary of Country Garden Holdings, the controlling owner of Country Garden Real Estate, has taken the same decision to suspend trading of one of its bonds. Local media reports suggest that the subscription bond of Country Garden will also be suspended.

According to Bloomberg on Friday, representatives of Chinese bank CICC informed several holders of Country Garden bonds that the bank’s bond underwriting team had participated in options dealing with yuan-denominated bonds of the real estate development company. According to people involved in the discussions, this comes as the troubled development company is considering extending some upcoming bonds.

These developments follow the announcement by China’s sixth-largest property development company in a filing to the Hong Kong Stock Exchange last Thursday that it expects to incur net losses ranging between ¥45 bn and ¥55 bn ($6.2 billion to $7.6 billion), compared to profits of ¥1.91 bn in the first half of 2022.

Country Garden apologized on Friday and pledged to take stronger and more effective measures to ensure the repayment of local bonds and address periodic liquidity pressures. This was stated by Chairman Yang Huiyan and President Mo Bin in a statement to investors and clients published on the WeChat platform.

In a statement on Saturday, the company said it plans to hold meetings with bondholders regarding repayment arrangements in the near future. It affirmed that it would take measures to mitigate risks and protect the legitimate rights of its investors while ensuring the repayment of local bonds.

Country Garden Holdings’ bonds and stocks declined last week as bondholders did not receive interest payments for two US dollar-denominated bonds on the initial due date, raising concerns that the company could be the next property giant to default.

The company’s shares fell 14% on Friday in Hong Kong before closing below HK$1 for the first time. The company’s stocks have plummeted by 63% this year, marking the worst performance among companies listed on the Hang Seng Index.