Shares in Chinese real estate giant Country Garden plunged as much as 11% on Tuesday, after a share placement aimed at raising $300 million was abandoned. The troubled developer had planned to sell 1.8 billion shares at HKD 1.30 apiece, compared with the day's price hovering around HKD 1.47. The reason was "internal considerations", although the bookrunners stated that the sale was fully hedged. JP Morgan, the sole bookrunner on the deal, declined to comment.
 
To add to the confusion, Country Garden denied its intention to raise funds, despite specific comments from several intermediaries involved in the operation.  "The Company wishes to clarify that as of the date of this announcement, no definitive agreement has been reached with respect to the proposed transaction and that the Company is not considering the proposed transaction at this time," according to a document filed on Tuesday. The moral? It's still impossible to trust this kind of company.
 
Losses, of course
Shares and bonds in Country Garden Holdings and its real estate services arm, Country Garden Services Holdings, have come under pressure recently due to liquidity issues, although the company signed a two-tranche loan agreement earlier this month. The real estate group warned on Monday that it would post a net loss for the six months to June 30, compared with a net profit of 1,910 million yuan ($267.31 million) a year earlier.