Hong Kong listed shares of Chinese language actual property developer Kaisa Group Holdings have been halted on Friday, following information that it had missed a fee on a wealth administration product earlier this week.
It comes as buyers proceed to observe for developments in China’s property sector following the fallout from closely indebted Evergrande.
Kaisa mentioned in an trade submitting on Friday that it is going to 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 fee on a wealth administration product, amid elevated worries about its strained liquidity.
Kaisa shares fell almost 13% this week earlier than the buying and selling suspension. The inventory is down about 70% up to now this yr.
Traders have been intently monitoring curiosity funds on the Evergrande’s bonds — the corporate initially missed making two funds, however managed to satisfy them inside the 30-day grace interval. All eyes are actually on different curiosity funds due in November and December.
A number of different Chinese language actual property companies had additionally been underneath the highlight for going into default, or lacking funds on their debt.
Fitch Rankings and S&P World Rankings downgraded Kaisa final week. Each companies cited the agency’s diminishing money movement.
Amongst Chinese language builders, Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds, in line 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 “purple traces” for actual property builders that the federal government outlined, in line with Natixis.
In keeping 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.