When the state-backed Postal Savings Bank of China unveiled a Rmb50bn ($7bn) credit line to Country Garden in November, it appeared China’s biggest private homebuilder would survive a sector-wide liquidity crisis.

Country Garden this week confirmed it had missed payments of $22.5mn on two of its international bonds, sending shockwaves through the country’s struggling real estate industry.

Its share price fell to a record low on Friday, hitting the fortune of chair Yang Huiyan, formerly Asia’s richest woman.Continue reading