Chinese real estate giant Country Garden's huge loss in the first half of this year has added to concerns over the outlook of China's economy. The firm was about 6.7 billion dollars in the red for the six-month period.
The property developer based in Guangdong Province was China's industry leader in terms of housing sales value last year.
Founded in 1992, Country Garden achieved growth with a business model of small profits, high turnover as real estate prices soared in China.
It has been expanding its business not just in big cities such as Beijing and Shanghai but in smaller cities in provincial regions.
The firm's website shows it was engaged in more than 3,000 development projects in China as of the end of 2021.
In the past few years, Country Garden made the list of US business magazine Fortune's largest 500 companies in the world in terms of sales.
The company's financial standing was believed to be comparatively sound compared with competitors as it focuses on the real estate business.
Evergrande Group, another major developer, fell into a crisis after seeking to diversify its business.
Country Garden's performance deteriorated quickly due to the prolonged slump in the real estate market, especially in provincial cities. The firm has faced financing difficulties, delaying interest payments on some bonds.
Observers say Country Garden's debt woes could further worsen the financial health of local governments that rely on revenues related to property developments.