SHARES in Chinese property developer Country Garden yesterday soared after investors backed proposals to restructure its debt, easing pressure on the embattled company.

The struggling developer agreed with investors over the weekend to extend the payment dates on a 3.9bn yuan (£424m) domestic bond, which was due to mature on Saturday.

The proposals secured the support of 56.08 per cent of Country Garden's investors and means it will repay the debt in instalments over three years. Its shares closed 15 per cent higher in Hong Kong.

The move prompted relief among investors, with Hong Kong's Hang Seng Index closing 2.5 per cent higher thanks to a strong performance from a number of developers.

Country Garden, which was previously considered one of the most reliable developers, has become a bellweather for the state of China's enormous real estate market, which makes up around a quarter of GDP.

Consequently, panic set in last week when Country Garden reported a record $6.7bn (£5.2bn) loss for the first six months of the year.

(c) 2023 City A.M., source Newspaper