China: New property fears have been developed about China’s property sector as Kaisa Group turns into the latest developer to have missed a payment to investors.
The Kaisa group claims that it was being subject to unprecedented pressure on its finances due to a very demanding property market. It also appears that Evergrande Group which is Kaisa’s rival group is still suffering from the pressure of more than $300bn (£222bn) of debt.
The plight of the Evergrande group has led to triggered concerns that its probable collapse could send heavy shockwaves through the global market. The Evergrande group has vended a UK-based asset as it looks towards another payment deadline on Saturday. Trading in shares of Kaisa Group along with three of its units was stopped in Hong Kong on Friday, after one of its businesses overlooked a payment on a wealth management product.
Friday’s filing to the Hong Kong stock exchange gave no reason for the trading suspension. Before the suspension, Kaisa, which has a market value of about $1bn, had seen that its shares had hit a record low on Thursday after falling by 15%.
Stay tuned to Baaghi TV for latest news and updates!