Property developer Kaisa halts Hong Kong buying and selling

Hong Kong listed shares of Chinese language actual property developer Kaisa Group Holdings had been halted on Friday, following information that it had missed a cost on a wealth administration product earlier this week.

It comes as buyers proceed to look at for developments in China’s property sector following the fallout from closely indebted Evergrande.

Kaisa mentioned in an trade submitting on Friday that will probably be suspending buying and selling. Its different models — Kaisa Capital, Kaisa Well being, Kaisa Prosper — additionally introduced they may halt buying and selling.

On Thursday, Kaisa mentioned its finance unit missed a cost on a wealth administration product, amid elevated worries about its strained liquidity.

Kaisa shares fell practically 13% this week earlier than the buying and selling suspension. The inventory is down about 70% up to now this yr.

Buyers have been carefully monitoring curiosity funds on the Evergrande’s bonds — the corporate initially missed making two funds, however managed to fulfill them inside the 30-day grace interval. All eyes at the moment are on different curiosity funds due in November and December.

A couple of different Chinese language actual property corporations had additionally been underneath the highlight for going into default, or lacking funds on their debt.

Fitch Scores and S&P International Scores downgraded Kaisa final week. Each companies cited the agency’s diminishing money stream.

Amongst Chinese language builders, Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds, in keeping with Natixis. Evergrande, the world’s most indebted actual property developer, ranks first.

As of the primary half of this yr, Kaisa had crossed two of China’s three “crimson strains” for actual property builders that the federal government outlined, in keeping with Natixis.

In line with Fitch, Kaisa has a considerable amount of debt due between now and end-2022, together with $400 million due in December, and round $3 billion due in 2022.

Regulators in Shenzhen will maintain a gathering on Friday to debate liquidity points at Kaisa and one other Chinese language actual property agency Fantasia, native media Cailianshe reported. Fantasia didn’t repay a $206 million bond that matured early final month.

Kaisa and Fantasia did not instantly reply to a request for remark.