Country Garden rises on pledge to refund Chinese buyers of Malaysia project

Stock in property developer Country Garden Holdings rose on Wednesday as a report said it would refund payments on its Malaysia Forest City project to mainland Chinese buyers hit by a crackdown on capital controls.
Zhu Jianmin, vice-president of the Chinese developer told the South China Morning Post that investors who had made down payments but were now unable to make further payments could cancel their transactions without paying a forfeit fee.

The Hong Kong-listed developer stopped sales of the Malaysian project in China amid tightening capital controls, imposed as Beijing seeks to curb outflows and limit downward pressure on the renminbi.

Chinese capital controls currently limit individuals to buying no more than $50,000 in foreign currency each year.

Shares in Country Garden are trading up 1.2 per cent at HK$7.06. The benchmark Hang Seng index is up 0.3 per cent.