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Kaisa Property Services Unit Shares Slip As Trading Restarts

Trading in the Shenzhen-based parent group remains suspended as it tackles the most offshore debt of any Chinese developer after China Evergrande

A woman rides her bike bChinese property developer Kaisa Group
A woman rides her bike by a building site of Chinese property developer Kaisa Group in Shanghai. Photo: Reuters


Kaisa Prosperity, a property services unit of Chinese developer Kaisa Group, saw its shares drop by 10.6% on Tuesday as trading resumed a day after it moved to reassure investors that its parent company’s liquidity issues would not affect its operations.

Trading in Kaisa Group and its three units listed in Hong Kong were suspended on November 5 pending “inside information” from the company. Kaisa Group remains suspended, while the three units resumed trading on Tuesday.

Investors became concerned about Kaisa Group’s liquidity after it missed payments on some wealth management products at home early this month.        

The Shenzhen-based developer, which has the most offshore debt of any Chinese developer after China Evergrande Group, is also suspected of missing coupon payments totalling over $59 million due last Thursday and Friday, rating agency Fitch said.


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Fitch downgraded Kaisa’s Long-Term Foreign-Currency Issuer Default Rating to “C” from “CCC-” on Tuesday on the payments it considered to have missed. 

One bondholder said he has not received the payment for both bonds yet, which both have a 30-day grace period. 

Last week, Kaisa pleaded for help from creditors and said it will not pay interim dividends.    

Kaisa Prosperity and two other units said in separate filings late on Monday their business operations were normal.

They said they had not received financial assistance from the parent company so any liquidity issues it faced would not have any material adverse impact on their operations.

Kaisa Health, which focuses on dental prosthetics and healthcare, rose 25.8% while Kaisa Capital dropped 10.9%. The Hang Seng Index gained 1.3%.


  • Reuters with additional editing by Sean O’Meara



Read more:

China Developer Kaisa’s Plea For Help Over Mounting Debt

Embattled Kaisa Group’s Shares Suspended in Hong Kong


Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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