HONG KONG: Shares of Kaisa Prosperity, a real estate services unit of Chinese developer Kaisa Group, fell 10.6% on Tuesday as trading resumed a day after it said the parent company’s liquidity problems did not would not impact its operations.
Trading in Kaisa Group and its three Hong Kong-listed units was suspended on November 5 pending “inside information” from the company. Kaisa Group remains suspended, while the three units resumed operations on Tuesday.
Investors worried about the Kaisa Group’s liquidity after missing payments on some wealth management products back home earlier this month.
The Shenzhen-based developer, which has the most offshore debt of all Chinese developers after China Evergrande Group, also likely missed coupon payments totaling more than $ 59 million due last Thursday and Friday, the agency said. Fitch rating.
Kaisa did not immediately respond to the request for comment.
On Tuesday, Fitch downgraded the long-term default rating of Kaisa’s foreign currency issuers to “C” instead of “CCC-” for payments he considered missing.
A bondholder told Reuters he has yet to receive payment for the two bonds, both of which have a 30-day grace period.
Last week, Kaisa sought help from creditors and said she would not be paying interim dividends.
Kaisa Prosperity and two other units said in separate documents Monday that their business operations were normal.
They said they did not receive financial assistance from the parent company, so any liquidity issues it faces would not have a significant negative impact on their operations.
Kaisa Health, which focuses on dentures and healthcare, rose 25.8% while Kaisa Capital fell 10.9%. The Hang Seng index gained 1.3%.