Country Garden, one of the largest property developers in China, recently mentioned that it might not be able to repay its debts on time. The company that was in a crisis announced that they lost a huge amount of money, $6. 7 billion, during the first six months of this year. Country Garden said in the statement that it was very sorry for not doing a good job. This news adds to worries about how the world's second largest economy will recover after the pandemic. Country Garden has also said that it did not make the required interest payments on the bonds that were supposed to be paid this month. However, it said that there was still a 30-day period where you could make the payments without any consequences. It is also said to be trying to get more time to pay back another loan. The company said that it might not be able to pay back its debts if its financial situation keeps getting worse. Country Garden said in a statement to regulators in Hong Kong that the group may not be able to meet the financial requirements of these borrowed funds. This could lead to a default on the borrowed money, which may also cause a default on other borrowed funds. Earlier this month, the company said that it might lose around $7. 6 billion in the first half of this year. The company predicted a loss between 45 billion yuan and 55 billion yuan, and the actual loss was at the lower end of that estimate, at around 45 billion yuan. Shares of Country Garden were up by approximately 1% during trading in Hong Kong on Thursday morning. The issues in China's property market, which involve things like constructing houses and manufacturing the goods used in them, are having a huge effect because it makes up about one-third of the economy. China's property industry was shaken up by new regulations in 2020, which limited the borrowing capacity of large real estate companies. Evergrande, a popular company in China, gathered a debt of over $300 billion. This happened because the company grew quickly and became one of the largest companies in the country. The company's money issues have affected the property industry in the country. Other developers have also failed to pay their debts and have abandoned construction projects throughout the country. During the weekend, Evergrande reported that it lost 33 billion yuan in the first half of the year. On Monday, the value of its shares dropped by almost 80% when they were traded in Hong Kong for the first time in a year and a half. The value of Evergrande shares dropped by over 99% in the last three years because the government in Beijing took action against real estate companies. China is also dealing with other problems, such as slow economic growth, excessive debt in local governments, and very high unemployment among young people. On Thursday, new information was released showing that activity in China's factories decreased for the fifth month in a row. The Purchasing Managers' Index was 49. 7 in August It got better compared to last month, but it's still below 50, which means there was a decrease.