Kaisa Group Shares Suspended as Evergrande Dips Again

nodetechno7 décembre 07, 2021

Shares in struggling Chinese developer Kaisa Group Holdings were suspended on Wednesday as larger rival China Evergrande Group lost more than 1.6% in Hong Kong trading after it missed a payment deadline on US dollar bonds.

The suspension occurred after reports indicating Kaisa would not meet a $400 million offshore debt deadline on Tuesday.

The shares were suspended “pending the release by the company of an announcement”, according to a filing on the Hong Kong stock exchange.

Last week, investors in Kaisa rejected an offer from the company to extend the maturity of its debt. The bondholder group includes Pimco and Ashmore.

Kaisa is a major borrower on international markets where it has close to $3 billion coming due in the next year.

Trigger a Cross-Default

Failure by Evergrande to make $82.5 million in interest payments due last month would trigger a cross-default on its $19 billion of international bonds, with possible ramifications for China’s broader economy.

As policymakers become more vocal and markets more familiar with Evergrande’s issues, the ripples from each new problem have been less widespread.

Evergrande was once China’s second-largest property developer, with more than 1,300 real estate projects.

With $300 billion of liabilities, it is now at the heart of a property crisis in China this year that has crushed almost a dozen smaller firms.

Beijing has said property sector problems can be contained and has moved to boost liquidity in the banking sector, while Evergrande plans to forge ahead with a restructuring.