Chinese developer Kaisa Group has suspended trading in its shares on the Hong Kong Stock Exchange after an overdue bond payment. As Reuters wrote yesterday, citing sources familiar with the situation, Kaisa is unlikely to be able to pay off $ 400 million on time, the maturity of this debt was set for Tuesday.
Thus, Kaisa has become another Chinese developer facing default. According to Reuters, in order for the company to avoid it, the holders of some of the bonds agreed to a postponement.
Since September, the Chinese development holding Evergrande Group has been fighting for survival. Then the total debt of the group was estimated at $ 305 billion. Since then, Evergrande has sold some assets and remains afloat, nevertheless, the risk of its default remains. Problems at Evergrande also affected other Chinese developers – for example, in October, another major developer, Fantasia Holdings Group, skipped payments on bonds.
Kaisa is the second largest borrower of foreign funds among Chinese developers after Evergrande. In connection with this crisis, Chinese regulators began checking the 25 largest state-owned banks and investment funds.
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