Country Garden told to halt presales in Jiangsu project
Embattled Hong Kong-listed developer is told to stop signing presale contracts in Nantong city because it does not have the required permit
The developer behind the embattled US$100 billion man-made city in southern Malaysia now faces another stumble. The Hong Kong-listed company had been told on Thursday to stop all presales for property projects in Nantong, a city in the coastal province of Jiangsu.
The news, first reported by The Paper citing a news release by the provincial party committee, said Country Garden Holdings had “engaged in improper sales tactics” by conducting presales without a permit.
The crackdown came after the city government of Nantong started investigations into property developers’ practises on Monday, the report said.
This caps a tumultuous time in recent months for Country Garden which is headquartered in Foshan, Guangdong.
It had to pledge refunds for Chinese investors who bought into Forest City located near Singapore, which is the largest overseas property project by a Chinese developer, following the tightening of China’s capital controls, although it made 244.2 billion yuan (US$35.95 billion) in the first five months of this year according to a company’s release.